Call: 203-637-6655 or email – Kyle Shepard

If you are thinking of a move to Florida here are some Tips on Home Locations:

The migration of individuals, couples, and families to no tax states like Florida has been ongoing since the passing of the SALT Limitation by Trump. But the decision of selling the family home, and locating to Florida has hit a hurdle in Covid-19.

“Before Covid, the best strategy was to buy in Florida”

Here is why and how it may affect you:

Florida is high on the list of destinations because of the lack of income tax, but with the year round warm weather you also have a hurricane hot spot for residents. Insurance companies struggle to determine how to deal with Florida wind/hurricane exposure.

Before Covid, the best strategy was to buy in Florida, and piggyback off your CT/NY/NJ insurance to get comprehensive coverage. Particular attention to distance to the water, flood elevation, and hurricane protection were the primary factors in procuring good coverage.

Enter Covid

All insurance companies are re-evaluating their exposures driven by the drop in equity value by +20%. That drop in the stock market has also impacted each insurer’s capacity to underwrite coverage. When capacity is challenged the first step for insurer’s will be to pullback from higher risk exposures, and #1 on that list is probably Florida. So the challenge of Florida insurance for a new property has become more and more dynamic and challenging.

Will Florida open back up post Covid, probably. But, how soon will be largely connected to the recovery and then any storms that hit Florida in the interim. We strongly suggest that if you are looking South you engage us in the process to identify the insurance costs for a specific property.

We are happy to assist.

Give Kyle a call at 203.698.9342 or kshepard@shepardinsgrp.com.


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