Skyrocketing Insurance Costs Forcing Retirees Out

Well, Florida used to be a nice retirement destination when I was young. Now a days I wouldn't consider it, this article citing one of the reasons. And it is only going to get worse down there.

Forcing us either on the street or in Medicare facility that seizes your home Unforgivable

Going forward, buying and maintaining a home of any kind in “The Sunshine State” will only be for the ultra wealthy, whether they be owner occupied or the investor class. It’s sad but I don’t see any alternative, especially in a State that is so anti-regulation and libertarian minded…I like the location for international travel, but it’s cost prohibitive for me.

An additional factor driving up insurance costs is inflation. My home has doubled in value in the last 10 years, but so has the cost of materials and labor to make any repairs. When gas prices and minimum wage increases, so does the cost of materials and labor.

Home or condo insurance costs are usually discounted if all exterior openings utilize hurricane impact glass or permanent shutters. This can reduce the annual premium by 20-25%. The cost of impact glass is high, though; shutters not as much. A significant additional benefit of impact glass is outside sound reduction and tight insulation that saves on HVAC monthly utility costs. Despite all the headlines, there are still some reasonably good buys on more modest, but still nice, condos in Florida. You’ll need to look inland from the beach by at least 3-5 miles. And consider a condo community with buildings no more than two stories (garden style units) to avoid many engineering and related maintenance costs associated with the new laws. Choosing a place on the second floor generally means you don’t have to buy flood insurance, but you’ll want to make sure a second floor unit has elevator access, important for retirement years. Condos with these attributes are more likely to hold their value over the years. In fact, with the current headlines about soaring insurance costs, it may be an appropriate time to look for these types of condos, as their prices overall are also down because the news articles often lump all “condos” together regarding insurance and repair costs when some are not necessarily experiencing such high HOA fee increases and assessments.

The median income for age 70 in the United States was just under $54,000 in 2003. That is about the average age of most residents in senior communities. I don't understand how to buy a $400,000 home on that income, let alone manage the carrying costs of insurance, HOA fees, taxes, and utilities. Just who are your readers? Are you only for the income elite?

Greetings: I have watched this forum for years and have not seen my area of concern discussed. How does one purchase a house or condo, when one does not have a job? I am 63, widowed and on a fixed income. There must be a way forward. Suggestions?

To the 63 year old widowed person asking how do you buy a home without a job: you say you are on a fixed income. Well-most people, job or not, are on a fixed income. I assume you mean low fixed income. You didn’t mention if you have any assets rather than income. Many Americans and overseas investors having been paying cash for homes. Assuming you have a low income and no assets and no rich benefactors, you could look into public housing. There is no universal/human right to housing in the US as there is in most of the developed world. Housing is a commodity in the States. And even these other countries that have labeled housing a right have had mixed results in solving the problem. Why do you think so many retirees have been moving out of the US in their so called Golden Years? Of course, moving overseas has its own headaches. Best of luck!

This website is named "Top" Retirements so of course the topics and respondants will skew towards the higher income levels. If there is a website named "Economy" Retirements then it would likely cover lesser cost options.

Ouch Danno! Our goal at Topretirements is to try to provide something for everybody, regardless of income. Our audience reflects that range. Although there are many luxury communities featured here, there are plenty of lower cost options, usually in manufactured homes or RV/Resort communities. You can find them in the Community Explorer feature. https://www.topretirements.com/community-explorer/ (under type of Unit). We also have written many articles about how to survive on a modest income - check out the "Financial" category in our Blog.

Danno was concerned about finding modest cost options discussed on Topretirements and in general. I posted on August 9 about 55+ active adult condos in Florida that are still reasonably priced and what to look for. A retiree can easily find such condos in certain areas of Palm Beach County, for example. A very nice 2 BR, 2 BA condo with washer and dryer and sun porch or balcony (900-1000 square feet) can be found in the $180’s price range or lower, with monthly HOA fees of less than $700. Those fees usually include a gated community, all exterior maintenance, insurance and landscaping, a multitude of pools (indoor and out) tennis and pickleball courts, beautiful clubhouses, many activity clubs and often a golf course that doesn’t require you to pay any golf buyin or annual fees, except reasonable greens fees whenever you do want to golf. I live in such a community and my annual real estate taxes, as a Florida resident, are right at $750 (all reserves fully funded) and my contents/liability insurance is around $1,300 annually, which in my case covers the maximum liability amount available. My monthly HOA fees are just under $650. You can find such condos on realtor.com in zip code 33484 (Delray Beach, a beautiful Oceanfront community) and other nearby zip codes.

To the comment by admin. above stating the median annual income for age 70 is $54,000; if that figure is per person and I assume it is then a couple brings in $108,000 annually. If as a 70 year old couple bringing in that much $ per year, you can't afford a $400,000 home then you need money management counseling. My wife and I have never earned more than $65,000 per year together as in, total household income! 50 years ago we were starting at about $7,000 annually ( my single income as my wife stayed home with the kids ) and it went up of course as she eventually joined the outside workforce but as stated earlier, never more than $65,000 combined annually. We are debt free and actually live in a nice middle-class neighborhood in our ( ironically ) $400,000 home. Our parents are all deceased and left us a total of $3,000 inheritance. Not complaining just clarifying for anyone wondering about that sort of thing. Thanks.

I was responding to the 8/9 statement above from "Admin says" regarding the question of if the site readers are elite. I tend to disregard complaints about FL being too expensive as I see many modest means pensioners living there. Try the beaches of AL or MS if you want a lesser cost alternative.