- A Havana homeowner, Michael Whittle, lost his home to a fire, only to face the added financial burden of unaffordable homeowners insurance premiums.
- Experts say rising inflation and a labor shortage have driven insurance rates up, with many Florida homeowners seeing premiums increase by as much as 30%.
- Watch the video to hear Michael's story.
BROADCAST TRANSCRIPT:
On January 10, Michael Whittle’s life was turned upside down when a devastating fire consumed the home he had built and lived in for 25 years. What was once a sanctuary filled with memories of his children and grandchildren is now nothing more than rubble.
Now, Michael faces a daunting challenge—not only is he dealing with the loss of his home, but he's also left to rebuild his life without the financial support of homeowners insurance.
“My home, for 25 years… now it's gone,” Michael says, reflecting on the sudden and heartbreaking loss.
For Michael, the situation is even more dire because he couldn’t afford the steep premiums for insurance. Like many Floridians, he found himself priced out of coverage as rates soared to unaffordable levels. When disaster struck, he was left without the safety net that homeowners insurance is meant to provide.
The Rising Cost of Insurance
I went and spoke with Alan McGinniss, of McGinniss Himmel Insurance Agency, to understand why insurance rates have become so unaffordable for some homeowners.
“The big ones have been, inflation has gone up, so the cost of fixing things has gone up. There's been a shortage of labor so the cost of fixing things has gotten worse for homes, property because of the cost of the labor and the cost of the inputs of the material,” Alan explains.
He adds that since 2021, he’s seen a sharp increase in homeowners' insurance premiums. Many neighbors have faced increases of 20 to 30 percent, and sometimes even higher.
For Michael, the decision to go without insurance was a financial one, but now he’s paying a heavy price. “It’s ridiculous the cost of it,” he says, clearly frustrated by the rising premiums that left him exposed when he needed coverage most.
Experts like Alan recommend that homeowners facing steep premium hikes should consult their agents to ensure their policies reflect only the coverage they need. However, even with these adjustments, many find that the cost of insurance is simply too high to maintain.
A Community Comes Together
In the face of adversity, Michael is finding some solace in the support of his neighbors. Despite the financial hardship, his community has rallied around him.
“I have to do some figuring, and figure out what my best route will be to go,” Michael says as he looks for ways to rebuild his life.
As Michael rebuilds his life, his family has started aGoFundMe campaign to help raise $10,000. It’s a reminder of how devastating the combination of rising insurance costs and natural disasters can be for Florida homeowners.
The investigation into the fire is ongoing, and a cause hasn't been released yet.
