- Floridians aren’t paying enough for flood insurance, according to an analysis by DeltaTerra Capital.
- Home prices in some parts could fall by 50% when buyers realize the true costs of flood protection.
- Hurricane Ian could mark a turning point as insurers reprice and other markets take note.
Hurricane Ian left a trail of destruction across Florida, but the state’s housing market has yet to feel the brunt of its impact.
Property values there haven’t accounted for the rising costs of homeownership, including inevitably higher costs of insurance to cover the risk of flooding from disasters like Ian, according to an analysis by DeltaTerra Capital, an investment-research and consulting firm led by a former Wall Street analyst who predicted the 2008 housing crash.
When insurers jack up flood-insurance premiums to more accurately cover their expected costs, sticker shock will ensue, DeltaTerra said. Home values in some of the highest-risk areas of the state — leading with the Fort Myers region that bore the brunt of this week’s storm — could drop by as much as 50%, it said.