Florida’s property market is in total free fall and there are only two culprits. One is something we can’t do anything about. The other is not only something we can do something about, it’s also something that makes the first one much worse.
The first culprit is reinsurance—it reimburses carriers for hurricane losses and can sometimes be as much as 60% of the total homeowners premium. The second culprit (the one that also makes reinsurance more costly) is frivolous, sometimes downright fraudulent litigation, proffered by a litany of complicit players, including public adjusters, roofers, rebuild contractors and dishonest attorneys. [Read more…] about Collapse of an Evil Empire! PART VII—Market Impact