April 22, 2024, WFTS-TV ABC Action News, Largo – And there aren’t many companies in the state even writing these policies, with Citizens Insurance taking most, according to former Deputy Insurance Commissioner, Lisa Miller. “I’d venture to guess less than 10 in our state are writing manufactured homes, some companies would write just a small amount just because they want to balance their portfolio, with Citizens being the most of any in our state, ” she said. (Original story location, including video version: https://www.abcactionnews.com/news/region-pinellas/insurance-industry-leaders-say-no-relief-in-sight-for-highest-risk-manufactured-homes-in-florida)
LARGO, Fla. – Largo resident Teri Jones emailed ABC Action News after seeing our coverage on Florida’s fractured insurance market, wanting to share her experience: seeing those premiums rise every year.
“The owners of mobile and manufactures home are experiencing the same thing,” she said. “I live in a 55+ community where it’s no longer affordable to have insurance.”
She chose to retire in a mobile home four years ago, but now she’s worried about her future.
“This is our little home and we want to stay here,” Jones said. “I don’t want to go anywhere else but I want to live here at least partially affordable.”
RATES STILL RISING
However, with her renewal notice this year, she’s afraid her and husband may have to dip into their lifelong savings to cover the costs. Not including the rising costs of lot rent, she said.
In 2022, her Citizens insurance premium was $970. In 2023, it went up to $1204. She just got her renewal letter for 2024, another increase at $1343. But that’s not all. Because Jones is on Citizens Property Insurance, one of the few companies that even write mobile home policies in Florida – she’s now required to get flood insurance.
“If we want flood insurance on our unit it’s an additional $1000 dollars,” Jones said. “So basically it’s doubled. And if you are someone with a single income, or just on social security, this is not cost prohibitive to you.”
MINIMAL OPTIONS FOR MANUFACTURED HOMEOWNERS
In shopping around, Jones did find other options with significantly less coverage that were significantly less in costs… hundreds of dollars. However, the caveat.
“It’s not going to cover wind and it’s not going to cover hurricanes. The premiums are much lower because you aren’t carrying flood and wind,” she said. “That’s a big risk. Don’t you think?”
However, it’s a risk she and her husband may be willing to take.
“My husband is leaning towards just taking a risk and going with a reduced premium, he said it’s ridiculous to pay those prices,” Jones added.
NO RELIEF IN SIGHT
It’s because of that high-risk insurance industry leaders say manufactured home insurance prices are still rising, with no relief in sight.
“Insurers consider manufactured to be an extremely high risk, especially in hurricane prone states like Florida,” said Mark Friedlander, with the Insurance Information Institute. “We see on average, rate increases for manufactured homes running 50% to 100%, way above the standard.”
And there aren’t many companies in the state even writing these policies, with Citizens Insurance taking most, according to former Deputy Insurance Commissioner, Lisa Miller.
“I’d venture to guess less than 10 in our state are writing manufactured homes, some companies would write just a small amount just because they want to balance their portfolio, with Citizens being the most of any in our state, ” she said.
Miller telling ABC Action News just last month insurance company American Traditions filed for a rate hike of 26% for 12,000 mobile home policies.
“I guess that’s the risk you take,” Jones added. “However, being abused by premium costs is another story entirely.”
ABC Action News anchor Nadeen Yanes is committed to covering the latest on the insurance market, if you have questions or want to share your experience with insurance with her, send her an email to [email protected].
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