Insurance costs forcing Canadians North for the winter

Soaring premiums are the last straw for many

Insurance costs forcing Canadians North for the winter

Property

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It’s been a long-standing dream for many – a home away from the worst of Canada’s winters in the sunshine – but it seems that, for many Canadians, skyrocketing insurance premiums may make the dream finally unaffordable.

A combination of skyrocketing insurance costs and newly implemented safety regulations is driving Canadian snowbirds to sell their Florida properties, causing a significant shift in the Sunshine State's real estate market. The move is largely influenced by a weak Canadian dollar, surging insurance premiums, and new condominium laws aimed at ensuring building safety following the 2021 Surfside tragedy.

Many Canadian retirees, who once sought Florida as a haven from harsh winters, are finding it increasingly difficult to justify the costs of ownership. Some Canadians have reported home insurance premiums going up tenfold.

Canadians accounted for nearly 25% of foreign property sales in Florida between April 2023 and March 2024, more than double the 11% recorded the previous year, according to the National Association of Realtors. Real estate agents like Alexandra DuPont, who caters to Quebec-based clients, reported a surge in listings, telling CBC “I’ve never had this much in a decade,” she said, noting that properties are lingering on the market longer than usual as potential buyers become wary of rising costs.

New safety regulations add pressure

Florida's new condominium safety law, introduced after the Champlain Towers South collapse, has compounded the financial burden for property owners. Signed by Governor Ron DeSantis, the law mandates stricter structural inspections, reserve fund requirements, and building upgrades for condominiums with three or more stories. Older buildings, especially those in South Florida, are now subject to higher monthly fees and significant one-time assessments to meet compliance deadlines.

Economic challenges for condo owners

Insurance costs remain a significant hurdle for property owners in Florida, with premiums averaging $3,600 annually—$1,000 above the US national average. The increased financial strain has led to a cooling of the condo market, particularly in coastal areas where hurricane risks are high. Properties that once sold quickly are now sitting on the market for months as buyers negotiate for price reductions to offset future assessments.

“Buyers are simply asking for price reductions that are commensurate with the costs they’ll have to pay over the next 20 or 30 years,”  Miami Beach real estate agent Gatien Salaun told NBC6.

A shifting market

Florida’s condominium crisis reflects broader economic and regulatory challenges facing the state.

While the new safety laws aim to prevent disasters like Surfside, experts warn that many associations lack the resources to meet the demands of the legislation. State Senator Jason Pizzo has called for greater oversight of condo associations to ensure rising fees are tied to safety measures rather than unnecessary amenities. He noted that nearly 90% of Florida's 1.6 million condos are more than 30 years old and have yet to undergo critical inspections.

Meanwhile, Governor DeSantis has called for a special legislative session to address the affordability crisis. “We want our condos to be safe... but we also want to make sure any safety measures are implemented in ways that are reasonable and affordable,” he stated.

A difficult choice for Canadians

For Canadian snowbirds, these mounting challenges are making ownership in Florida increasingly untenable. Many are now choosing to rent during the winter months or explore alternative destinations such as Portugal, Mexico, and the Dominican Republic. With costs continuing to rise, the once-affordable dream of a Florida home is becoming a luxury fewer can afford.

While the new regulations aim to protect lives and property, they also mark a turning point for Florida’s real estate market, leaving both homeowners and lawmakers grappling with how to balance safety and affordability.

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