With property insurance premiums doubling in recent years, a growing number of Florida homeowners are altogether cancelling their policies. They are betting the short-term savings outweigh exposure of dropping coverage in such a storm-plagued region.

According to Miami insurance agent Sunem Hernandez, "We are witnessing a surge of locals ditching coverage just to alleviate relentless premium spikes, even clients fully aware of the immense financial jeopardy this entails." State trends affirm agents' anecdotal experiences – Florida significantly leads the nation in shedding insurance, with estimates of 15-20% now going entirely without.

The culprit of this alarming trend?

Skyrocketing annual premiums now averaging approximately $6,000 statewide, exceeding last year’s prices by over 40% in a presumed “crisis” market. Miami rates often approach double the state figure, as South Florida grapples with a deeply dysfunctional system.

Homeowners canceling policies generally share common traits – zero outstanding mortgage debt and sufficient assets to personally cover disaster repairs if needed. This includes both retirees who fully paid off properties long ago as well as younger residents strategically utilizing separate loans on other assets to pay off mortgages early, freeing themselves from lender-required coverage. Wealthy individuals able to leverage diverse holdings tend to power this risky route.

Aside from unaffordable costs, the insurance industry’s reputation for complexity and claim-denying aggravates homeowners’ frustrations. Patrick Wraight of Insurance Journal notes policies frequently refuse payouts after damage customers feel entitled to, eroding public trust in carriers. Combined with extreme premium hikes, this contempt impels many to say "no more."

What to think about before dropping insurance coverage...

No residence is immune from fires, storms, or other perils which could easily destroy an entire dwelling. Dropping insurance leaves homeowners utterly responsible for all rebuilding and property replacement out-of-pocket, often totaling over $300,000 in hurricane regions. Even partial roof damages might demand thousands for repairs. Vital liability coverage protecting assets from lawsuits also disappears sans insurance. For all but the extremely affluent, this poses substantial financial risk.

How Drodat is helping solve this problem

At Drodat, our mission is to overhaul broken insurance conventions through unmatched property data assets powering fairness and transparency. Our expanding imagery archive documents exterior risks like aging roofs over time, helping illuminate fraud after disasters while fueling advanced analytics to enable accurately calibrated pricing reflecting quantifiable exposures. We are pioneering the data foundations and models essential for next generation insurance solutions. For Florida homeowners frustrated by volatile, unreliable coverage, Drodat may soon offer hope of renewed stability.