This short article at tampabays10.com highlights some of the effects the property insurance crunch in Florida may be having on the state’s economy:
Mastry Engine Center’s property insurance just went from $50,000 to $225,000 for his St. Petersburg warehouse and parts plant.
A rate hike that can suck the profit out of a small company, leaving its president wondering what he can do about the higher costs.
Tino Mastry, President of Mastry Engine Center:
“In my opinion, three options. One: Pass it on which we can’t do. Two: Lay people off, which we won’t do. And number three: relocate to somewhere, where insurance costs aren’t as high.”[.]Mastry says Florida’s insurance costs have people looking to start, or relocate their businesses to other southern states.[.]
And Mastry too is looking to move to Georgia, where he can save more than $200,0000 a year in premiums and other costs.
While it’s always possible for reporters looking for a bit of sensationalism for the local paper or local newscast to find a bit of a tear-jerking story to run. I could easily imagine more stories like that one being told up and down the coasts of Florida.