After Hurricane Helene tore its way through Mexico and into Florida, causing widespread displacement and leaving millions without power, some mortgage lenders are extending a helping hand. A recent report from Realtor.com shows how much they need it, given that a staggering 15% to 20% of Florida homeowners didn’t have homeowners insurance to cover damages.
The average cost of homeowners insurance in Florida has tripled over the past four years. In 2023, they paid $10,996 annually for home insurance, which is more than four times the national average of $2,377.
“The lack of coverage is especially high, and especially concerning, in areas such as Houston and Miami,” said Realtor.com senior economic analyst Hannah Jones. “Homeowners in these metros face a high risk of property damage due to extreme flood and hurricane events, and are therefore confronted with high insurance costs that may feel untenable to many households.”
However, Fairway Independent Mortgage Corporation demonstrated its support for Florida homeowners to the tune of a million dollars, according to a LinkedIn post from CEO Steve Jacobson.
“Fairway is putting up 1 million dollars towards the much-needed relief efforts due to Hurricane Helene,” Jacobson said, before throwing down the gauntlet. “BUT… that is barely enough. [I’m] challenging all of the main IMBs and the 2 major wholesale lenders in Detroit to do the same. Why not? If we are really all here to help and serve others, why not come together when it is needed — and collectively support a region that is in desperate need? Our industry has a responsibility to help when needed. The HELP is NEEDED.”
In a separate LinkedIn post, Jacobson stated that Fairway is also helping its clients struggling to close on their new homes after Hurricane Helene swept through the state. For those who closed this past weekend, Fairway would pay for two nights in a hotel, dinners, and extra storage for the weekend.
“Would hope all our competitors would follow and do the same,” Jacobson added in the post. “After all, we are all here to help and to serve others. We all know, we can all be humbled in seconds.”
The report also cited the Consumer Federation of America, which reported that Florida has $1.6 trillion of properties vulnerable to natural disasters. Since many of Florida's property and casualty insurers have liquidated, non-renewed policies, or substantially hiked premiums, Realtor.com's data tracker shows that homeowners have faced a 43.2% rate change in the past five years.
