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Florida insurance crisis spells mortgage disaster

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Florida insurance crisis spells mortgage disaster


The ongoing insurance crisis in Florida, fueled by the exodus of major insurers and the increased risk of extreme weather events, could trigger a downturn in the state’s real estate market, experts told Newsweek.

Homeowners in the Sunshine State currently pay the highest insurance premiums in the country. Floridians pay private insurers an average premium of about $6,000 a year, according to the latest data from the Insurance Information Institute, or Triple I, according to Barron’s and CNN Business, compared to the national average of $1,700.

Few people can self-ensure against the loss of their homes, and banks require an insurance policy to protect their collateral and provide a mortgage for a house.

The increasingly unaffordable cost of home insurance risks leaving residents uncovered, and thus unable to get a mortgage should they want to buy a new home, which could escalate to a statewide decline in the real estate sector.

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“If you don’t have an insurance policy, it’s basically impossible to take out a mortgage,” Benjamin Keys, an economist and a professor of real estate and finance at the University of Pennsylvania’s Wharton School, told Newsweek.

“And given the important role that financing plays in the housing market, without a functioning insurance market you don’t have a functioning mortgage market, you don’t have a functioning housing market.”

Photo-illustration by Newsweek/Getty

Why Do Many Floridians Risk ‘Going Bare’?

Because of the higher risk posed by climate change, which scientists expect will increase the frequency and severity of extreme weather events in vulnerable states like Florida, “there are more people living in harm’s way, the severity of the disaster is more extreme and the cost of repairs has gone up,” Keys said. “A number of years with large storms and large claims has put some private insurers out of business and led others to simply leave the state.

“Insurers have also been really concerned that a portion of their elevated claims is due to fraud. And they were successful in pressuring the state Legislature to pass sweeping reform that makes it much more insurer-friendly on the fraud front. But in spite of these changes going through, insurers have not returned to Florida on any large scale.”

Between 2022 and 2023, more than a dozen private insurers left Florida, including Farmers Insurance, leaving many residents with a lack of options to insure their homes and considering “going bare,” going without any coverage on their properties.

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According to Keys, “the private market for homeowner insurance has failed” in Florida.

“There’s a large gap in the market of homeowners who would like to have affordable policies from private insurers but are unable to find them and have to turn to a state-run entity called Citizen Property Insurance,” he said.

There are currently an estimated 1.3 million homeowners in the Sunshine State insured by Citizen Property, according to Keys.

What Could Be the Impact on Florida’s Housing Market?

Chicago-based real estate investor Sean O’Dowd thinks that the impact of the ongoing insurance crisis in Florida on the state’s real estate market depends on whether you believe the insurance premiums increases of the past couple of years are a blip or a trend.

“In my opinion, I strongly believe it’s a trend,” O’Dowd, who runs a real estate fund buying single-family homes in highly elite school districts and then renting the homes on 3-plus-year leases, told Newsweek.

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“I’m an institutional SFR [single-family rental], I’ve spent a lot of time with the biggest institutional SFR players and they have given us explicit warning to stay away from Florida, and that if we buy portfolios in Florida, they won’t buy from us because they’re so negative on Florida in the long run, which is scary.”

The increase in real estate prices in South Florida is one of the largest in the U.S. The ongoing Florida insurance crisis could spill over to the state’s housing market if residents are left without affordable home insurance.
CHANDAN KHANNA/AFP via Getty Images

That’s why O’Dowd believes that the current insurance crisis is going to have a “significant negative impact” on the Florida real estate market.

“There’s not a single lender out there that I’m aware of that will give you a mortgage without proof of insurance,” he said.

“The problem is, if you have an insurance payment that’s just as much as the principal and interest payment for the mortgage, if you’ve got an insurance payment that’s five hundred bucks a month, you get to a situation where a homebuyer—especially a first-time homebuyer that doesn’t have a lot of capital to put down for the down payment—has such a weedy monthly payment with this huge insurance premium that they cannot afford to buy a house.”

This is a situation that’s going to “flush a ton of buyers, especially first-time homebuyers and retirees on fixed income, completely out of the market,” O’Dowd said. The impact on the real market then is that homeowners would need to cut prices in order to sell, pulling down the market.

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Homebuyers will be hurt by the crisis as much as homeowners, according to O’Dowd.

“Everything that I’ve been told and I’ve been seeing is insurance rates continue to rise, that makes the monthly payment substantially higher, that makes affordability a lot worse, that pushes down prices—with the one caveat of what happens with retirees who frequently buy in cash,” he said.

Uncommon Knowledge

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

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Charges dismissed for woman without right hand cited for holding phone while driving

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Charges dismissed for woman without right hand cited for holding phone while driving


A traffic citation issued to a woman who said she was accused of holding a phone in a hand she does not have has been dismissed.

Court records show the citation was dismissed at the request of the Palm Beach County Sheriff’s Office deputy who issued it. A court hearing had been scheduled for Tuesday, but was canceled after the case was dropped.

The citation, issued Feb. 11 along North Dixie Highway in Lake Worth Beach, accused the driver of violating Florida’s wireless communications while driving law. The case drew widespread attention after the woman posted video of the traffic stop on TikTok, where she questioned the deputy’s claim that he saw a device in her “right hand.” She said she does not have a right hand.

EARLIER STORY IS BELOW

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A Lake Worth Beach traffic stop is gaining attention online after a woman was cited for using a wireless communications device while driving, but video of the encounter is now sparking debate over how Florida’s distracted driving law is enforced.

The citation, issued by a deputy with the Palm Beach County Sheriff’s Office on February 11 around 8:04 a.m. along North Dixie Highway, lists the charge as “Wireless Comm. Device/Handheld While Driving – First Offense” under Florida Statute 316.305(3)(a), with a civil penalty of $116.

In a video posted to TikTok that has since gone viral, the driver records the stop and questions the deputy’s observation. The citation indicates the deputy observed a handheld device while she was traveling northbound on North Dixie Highway.

During the stop, the deputy is heard stating he saw the device in her “right hand.” The woman says she does not have a right hand and plans to challenge the citation in court. She has also requested body camera footage from PBSO. CBS12 has submitted a public records request for that footage as well.

What Florida law actually says

Florida’s Wireless Communications While Driving Law has been in effect since 2013 and was strengthened in 2019, making texting while driving a primary offense, meaning drivers can be pulled over solely for that violation.

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Under the 2025 Florida Statutes, drivers may not manually type or enter letters, numbers, or symbols into a wireless communications device while operating a vehicle for non-voice communication, such as texting, emailing, or instant messaging.

However, the law includes several exceptions. Drivers are allowed to use a device for navigation or GPS purposes, receive safety-related alerts, report emergencies, and engage in voice communication that does not require manual typing.

“The statute’s actually really explicit,” Donahue said. “It says you have to be engaged in manually typing letters or numbers into the device.”

In other words, simply holding a phone is not automatically illegal under current Florida law outside of certain zones. The statute focuses on manually typing, entering multiple letters or numbers, or sending and receiving data while operating a vehicle.

Additionally, handheld use of a wireless device is specifically prohibited in designated school crossings, school zones, and active work zones. Attorney Ted Hollander with the Ticket Clinic says that distinction is key.

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“Whether she’s holding it in her right hand or her left hand, it really doesn’t matter,” Hollander said. “If you are not in a school zone or a construction zone, you are allowed to hold a cell phone.”

Hollander noted that on this citation, neither a school zone nor construction zone box is checked.

“The fact that neither one is checked off tells me that this did not occur in one of those zones,” he said.

Enforcement and burden of proof

Hollander says it’s common for drivers to pay citations without questioning them — even in cases where the ticket may not hold up in court.

“So a lot of times people pay tickets that shouldn’t be paid, and this could have been one of those examples,” he said. “But luckily this lady seems to be standing up for herself.”

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Donahue says enforcement can be challenging.

“It’s really difficult for the officer to prove that unless they visually see it or have it on their cameras,” he said. “That’s one of the reasons why you pretty much never see this infraction enforced.”

Donahue said that in his experience practicing traffic law in Palm Beach County, texting-while-driving citations are rare.

If a driver contests the ticket, the case would go before a traffic magistrate or judge. As a first offense, the violation is a non-moving civil traffic infraction punishable by a fine. A second offense within five years could carry points on a driver’s license.

Donahue notes that even though the statute is narrowly written, drivers should still exercise caution.

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“You don’t want to be in a position where you have to prove your innocence,” he said. “Although the law is not that strict, you really need to treat it almost like it is.”

The woman says she has requested a hearing date and plans to fight the citation in court. PBSO has not yet responded to CBS12’s request for body camera footage or comment on the stop.

As the case moves forward, the viral video is reigniting discussion about distracted driving laws and how clearly they are understood by both drivers and officers.



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Rain chances linger this week in Central Florida

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Rain chances linger this week in Central Florida


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At WKMG, we are committed to informing and delighting our audience. In our commitment to covering our communities with innovation and excellence, we incorporate Artificial Intelligence (AI) technologies to enhance our news gathering, reporting, and presentation processes. Read our article to see how we are using Artificial Intelligence.



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Supreme Court tosses Florida lawsuit against states for driver’s licenses issued to undocumented immigrants

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Supreme Court tosses Florida lawsuit against states for driver’s licenses issued to undocumented immigrants


WASHINGTON — The Supreme Court on Tuesday threw out a long-shot lawsuit in which Florida sought to sue California and Washington for allegedly allowing people who entered the country illegally to obtain commercial truck driver’s licenses.

Florida’s claim was filed in the aftermath of a high-profile crash in the state last year in which a truck driven by an Indian man, Harjinder Singh, was involved in an accident that left three people dead. The state, which says Singh did not have legal status in the United States, alleges he was wrongly issued licenses in both California and Washington. Singh faces criminal charges over the incident.

The court denied the state’s appeal without comment.

Tune in to Here’s the Scoop’s special Supreme Court Edition, where Senior Legal Correspondent Laura Jarrett goes deep on major cases.

Conservative Justice Clarence Thomas wrote a separate opinion saying he would have heard the case. He was joined by fellow conservative Justice Samuel Alito.

“This court declines to even hear Florida’s claims, even though it has nowhere else to bring them,” Thomas wrote.

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The unusual case saw Florida Attorney General James Uthmeier, a Republican, file a claim directly at the Supreme Court instead of a lower state or federal court. The court can sometimes intervene in such disputes between states, but it rarely does so.

Harjinder Singh
Harjinder Singh is arraigned in Stockton, Calif., on Aug. 19.Clifford Oto / The Stockton Record via AP file

The lawsuit alleged that the Democratic-led states’ “open defiance” of federal immigration laws has led them to flout federal safety regulations. This has resulted in drivers obtaining licenses without “proper training or the ability to read road signs.” Those drivers cross state lines and are therefore threatening the safety of people in Florida and other states, the lawsuit says. Iowa and 16 other states filed a brief backing Florida.

Lawyers for California and Washington argued in response that there was no basis for the Supreme Court to take up the issue.

Washington Attorney General Nicholas Brown wrote in his brief that the lawsuit was a “political stunt, not a real claim,” noting that Uthmeier announced he was filing it during an appearance on conservative Fox News host Sean Hannity’s show.

Uthmeier, who is currently running for a full term after being appointed by Florida Gov. Ron DeSantis last year, has frequently leaned in on divisive conservative causes.

The Florida crash sparked a new political fight over illegal immigration as the Trump administration implements a hard-line immigration policy. In the aftermath of the incident, the administration threatened to cut off federal funds from California, Washington and New Mexico if they did not implement English language requirements for commercial drivers.

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