The following graphs are from a US Census report using 2006 housing data. Admittidly, they are several years old and before the mortgage debacle of 2008, but nonetheless...
The following definitions apply:
Monthly owner costs:
•MortgageWithout burden = under 30% of income spent on housing costs
•Second mortgage and/or home equity loans
•Real estate taxes
•Condo fee (if applicable)
•Mobile home cost (if applicable)
•Utilities – Electricity, Gas, Water and Sewer, and Other Utilities
Moderate burden = 30% to 49.9%
Severe burden = over 50%
|SMOC = Selected Monthly Owner Costs|
When monthly home costs are considered as a proportion of the total cost, it is evident that the majority of the monthly cost is the mortgage. In Florida the proportion is 63.6% (2% lower than the national average) of income while insurance is 21.9% of income (3.6% higher).
Hence, is the perception of a Florida homeowners insurance affordability problem actually a problem of insurance cost or is it really a problem of the cost of Florida homes in a state with relatively lackluster incomes?