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Southeast: The price of tropical exposure

When it comes to homeowners insurance rates, America’s Gulf Coast pays a premium for its proximity to the Gulf of Mexico. Florida ranks second behind Texas on the national pain index, Louisiana third, Mississippi fifth and Alabama eighth.

Blame it on Mother Nature.

  Pain states Tame states
Auto insurance Alabama

Arkansas

Florida

Georgia

Kentucky

Louisiana

Mississippi

Tennessee
Home insurance Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Tennessee

Kentucky

“Hurricanes do totally destroy homes. Tornadoes even do a better job of it, but they tend to cover a much smaller area,” says Luedke. “You might have a hailstorm that does some damage to your roof, but if a hurricane or tornado hits you directly, you don’t have a home anymore.”

The pain level for Southeastern drivers may reflect both their high premium-to-income ratio and the explosion of auto fraud and staged accidents, especially in Florida and Louisiana.

“Florida right now is in the throes of massive insurance fraud, as is Louisiana,” says Sullivan. “Part of it is these are highly litigious states.”

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