Ryan Serhant warns Florida insurance crisis ‘one of the biggest problems people will see’
THE SERHANT. real estate founder, CEO and broker Ryan Serhant analyzes Florida’s insurance ‘crisis’, current market sentiment and where home prices are headed.
Florida is known for hurricanes and their costly impact. But the rising cost of home insurance seems to keep rising, and it’s something Ryan Serhant can’t ignore.
“It would be $34 billion bad. It’s one of the biggest insurance problems we’ll see, I think, in a very long time,” SERHANT. The CEO, founder and salesman said in “Varney & Co.” On Friday.
A little over a week ago, Hurricane Helene made landfall in the Big Bend area of the Sunshine State after strengthening into a Category 4 hurricane with winds of up to 140 mph.
After the crash, millions of customers were without power in Florida, and outages were mounting in Georgia and the Carolinas. Some in the South saw an “unsurvivable” storm, with the death toll exceeding 200, FOX Weather reported.
HORRIBLE SITUATION SHOWS HOW FEW HELENE VICTIMS HAVE FLOOD INSURANCE IN APPALACHIA
Since 1980, the US has been affected by 378 extreme weather events that have caused at least $1 billion in financial damage, reports the National Oceanic and Atmospheric Administration (NOAA).
THE SERHANT. Founder Ryan Serhant says Florida has “one of the biggest insurance problems we’re going to see, I think, in a very long time.” (FOX Business)
Florida cities like Hialeah, Miami, Fort Lauderdale, Hollywood and West Palm Beach all rank high in the risk of natural disasters, and pay some of the highest insurance premiums.
Data released by Insurify, an online insurance comparison website, showed the rate of family insurance increased by almost 20% between 2021 and 2023, with a further 6% expected before the end of the year.
Homeowners in Florida and Louisiana faced the highest rates nationwide, with increases expected to be 7% and 23%, respectively, over the next year.
Asheville Tea Company founder Jesse Dean describes the damage caused to his business by Hurricane Helene in ‘Varney & Co.
“What scares me the most is that only 2% to 4% of homeowners have flood insurance,” said Serhant. “If you get it through the National Flood Insurance Program, it’s $1,000 a year on top of all your other expenses. So it’s bad.”
In addition, the American housing market is still in a critical state, according to Serhant, even though the Federal Reserve lowered the standard rate from 4.75% to 5%.
“Inventory is high, interest rates are at a 20-month low, but buyers are still sitting on the sidelines. People are waiting. They want to see if the deals will come,” explained the “Owning Manhattan” star.
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Treasure Island Mayor Tyler Payne describes the extent of the damage caused by Hurricane Helene in his Florida hometown to ‘Varney & Co.’
“No one wants to catch a falling knife, but neither does anyone want to jump into a speeding car.”
The average homeowner’s insurance rate in Florida is about $11,000 a year, but Insurify said that could be closer to $12,000 with the proposed rate increase.
READ MORE AT FOX BUSINESS
FOX’s Steven Yablonski, Emilee Speck, Scott Sistek and Andrew Wulfeck contributed to this report.
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