Hundreds of Florida nursing homes close due to insurance rates
Is Florida's Elder Care in Crisis Due to Costs?
Over the past five years, an alarming number of nursing homes in Florida have closed due to skyrocketing commercial property insurance rates, with an average of 146 facilities shutting down annually. This surge in costs, which saw a 125% increase in premiums within the state, contrasts sharply with the national average increase. The financial strain is exacerbated by natural disasters like Hurricane Ian and ongoing labor shortages, pushing many facilities towards insolvency and raising concerns about the future of senior care in a state with a rapidly aging population.
How does the increase in Florida's insurance premiums compare to the national average increase last year?
Florida's insurance premiums have seen a significant increase compared to the national average. In the five-year period ending in 2023, commercial property insurance premiums in Florida rose by 125%. Last year alone, annual premiums in the state increased by around 27%. In contrast, nationwide, annual premiums rose by just 6% last year, down from around 15% in 2022. This substantial difference in increase rates highlights the disproportionate impact on Florida's property owners and businesses, including nursing homes and assisted-living facilities.
What was the percentage increase in annual commercial property insurance premiums in Florida last year, according to Bloomberg News?
Last year, the annual commercial property insurance premiums in Florida increased by around 27%, according to Bloomberg News.