Hurricanes, Development, and Our Insurance Crisis

It should be a surprise to no one that Florida is facing an insurance crisis. For decades, state and local governments have permitted inappropriate development in hurricane-prone areas and continue to do so today. There appears to be little consideration given to the overall problems associated with landfalling hurricanes when approving new developments in this area.

It is currently estimated that Hurricane Ian will cause a total of $100 billion in damage, the largest hurricane loss in Florida's history. Florida already has the highest property insurance rates in the nation. Yet, with an insurance crisis looming on the horizon, one obvious solution to the problem is not even being considered: stop density increases in flood-prone areas. The mechanism is there to control growth in these areas, but not the political will.

It is almost laughable that Florida’s political leaders expect the rest of the nation to bail us out of problems we have created for ourselves because of decades of improper coastal development. Florida ranks first in hurricane occurrences and is the most vulnerable state in the nation to the devastating effects resulting from coastal storms. The increase in population and the continued coastal development over the past few decades have left residents extremely vulnerable to the devastating effects of hurricanes.

Development industry representatives will certainly suggest that one solution to the current insurance problem is to build our way out of it, citing statistics suggesting that as more development occurs, more will pay into the insurance pool and rates will stabilize or even drop. Such convoluted logic is likely to appeal to most of our legislators, so the real problem of increasing densities in hurricane evacuation zones will not have to be seriously considered.

As additional people move into Southwest Florida, there will be an increased threat of extensive loss of life and property damage. It is critical that residents understand the dangers of living in a hurricane-prone area. Currently, there are no hurricane evacuation clearance time standards for new or existing development. Legislation needs to be passed that would require the disclosure of hurricane evacuation times when potential buyers are purchasing residential property. Prospective buyers and renters have the right to know and should be informed, whether they can or cannot safely evacuate from property they are considering purchasing or renting.

Florida is known for its unique and valuable wetlands, wildlife habitats, beaches and marine resources, but our weak land development regulations are underwriting the continued development in flood-prone, coastal and environmentally sensitive areas. Local governments routinely approve construction seaward of established coastal control lines where no construction is supposed to occur.

It remains to be seen if the next legislative session will result in any meaningful actions to limit growth in hurricane-prone areas. Florida’s policymakers need to realize that there is such a thing as a coastal high-hazard area, and it is not in our best long-term interest to continue to build in it.