As homeowners across Florida open their [tag]windstorm insurance[/tag] renewal notices this year, they are learning they’re going to be paying hundreds or even thousands of dollars more for their premiums. What they may not know is that today and for the past three decades, they have also been sending tax money, both indirectly and directly, to property [tag]insurance companies[/tag] â€” not to keep their own premiums low, but to ensure those companies’ profits.
That state government is involved even to the extent it is today is testament to the crucial role property insurance plays in the lifeblood of Florida’s economy: real estate development. Similar price hikes and lack of availability in, say, trip cancellation insurance, almost certainly would not lead the state to create a program to help residents buy it. Homeowners insurance is something else entirely. Without an income tax, Florida for decades has relied on real estate transaction taxes and increasing sales tax revenues from new residents to pay the state’s expenses.