COVER STORY
To continue living in Florida , says Parrish , you have to be willing and able to “ pay five figures for homeowner ’ s insurance , own a generator , and ride out the storm when it comes your way .”
He adds that in time , perhaps only the wealthy will remain , since they are the only ones who “ can afford to protect their properties from hurricanes and floods , and they can absorb the risk of subpar insurance . Those who are on a budget … simply can ’ t afford the bill that comes with living in paradise .”
He also says the 2024 hurricane season will only accelerate the pace of migration away from the state , and that the double whammy of devastation is “ a wake-up call ” for many clients to consider Florida as “ just a place to visit .”
Is The Dream Over ?
But is the dream of retiring to Florida truly over , or merely tarnished ? After all , Florida has rebounded from devastating hurricanes time and again , and other advisors remain cautiously optimistic .
“ It is very difficult to not feel some level of sadness when seeing the destruction ,” says Mason Salit , chief talent officer for Dynasty Financial Partners , which moved its headquarters from New York to St . Petersburg five years ago . “ We are all chipping in to help
in any way that we can . Supporting others helps to assuage some of my stress .”
Florida , he says , still has many positives to offer . He cites the weather , the beaches , zero state income taxes and “ in many places , affordable housing compared to where someone had been living .”
Still , what do you tell clients — perhaps elderly retirees — who have just lost their dream home ? “ It is traumatic , especially for those 65-plus , many of whom carried no flood insurance ,” says John Mosher , a vice president at Unique Wealth in Clearwater , Fla . “ Their lives will be altered forever .”
People are permanently displaced from their homes , he says , and the barrier islands are particularly devastated . Neighborhoods will rebuild , he adds , though “ the faces will most likely change .” Mosher says he ’ s been reaching out to all his clients in the area to offer whatever support they need , trying to connect them with contractors or restoration workers to address immediate necessities and “ move the rebuilding process forward as quickly as possible .”
His own neighborhood has been spared the direct impact of the storms . Those who are so fortunate , he says , risk feeling complacent . Many homes that were built 40 or 50 years ago are not compliant with the current standards of the Federal Emergency Management Agency ( FEMA ). If they are on the water ’ s edge , for instance , they will probably have to be rebuilt 8 feet or 12 feet higher to withstand future storms .
“ To continue living in Florida , you have to be willing and able to pay five figures for homeowner ’ s insurance . In time , perhaps only the wealthy will remain .”
— Steve Parrish , American College of Financial Services , St . Augustine , Fla .
DECEMBER 2024 | FINANCIAL ADVISOR MAGAZINE | 37