How can St. Petersburg become affordable again when coastal insurance keeps rising?

Why St. Petersburg is different

St. Petersburg sits on a peninsula surrounded by water. That geography makes for stunning sunsets and a thriving coastal economy. It also makes the city vulnerable to storm surge, flooding, and hurricane wind damage. When private insurers price that risk, they price many families out of the market entirely.

The homeowner's insurance market in Florida has collapsed and it is not coming back because none of the major carriers are here. The collapse is due to denying climate science for so long that there is no longer an affordable way for the market to cover major hurricanes, floods, and big storms.^[4] In coastal Pinellas County, that reality hits harder than almost anywhere else in the state. Residents face the choice between paying premiums that eat a quarter of their income or going uninsured and hoping nothing happens.

For renters, the insurance burden shows up in monthly rent. Landlords pass through the cost of skyrocketing property insurance and utility bills. The result is a rental market where families are jumping month to month, not knowing where they will find a roof over their children's heads.^[5]

The plan for St. Petersburg

David Jolly proposes introducing a package for a state catastrophic fund on day one as governor to fully remove hurricane and wind coverage from the private market and reduce homeowner's insurance by 60 to 70 percent.^[1] Putting coverage in a state sovereign wealth fund is the only actuarially sound way to cover the risk of natural disasters and hurricanes in states like Florida, and it allows Florida to lead the country and the world in providing coverage for homeowners while ensuring economic recovery from major storms.^[6]

For renters in St. Petersburg, David Jolly's plan scales up a historic investment in workforce and affordable housing using public-private partnerships that have proven to work.^[7] Models exist from Miami to Pensacola that deliver housing units to people based on their income, trade, proximity to work, and station in life. These partnerships allow a teacher, a nurse, a first responder to afford living in the community where they work. Republicans in Tallahassee have just failed to invest in workforce and affordable housing.^[8]

Utility rates in St. Petersburg and across Florida are higher than the national average because the state allows utility providers to receive a profit greater than the national average.^[3] David Jolly has proposed capping the rate of profit at the national average, an almost 10 percent return, to ensure fairness for ratepayers. That would benefit both homeowners and renters by reducing utility costs while still allowing utilities a reasonable profit margin.^[9]

What it means for working families

Across St. Petersburg, working families are making impossible choices. Pay the insurance bill or pay the rent increase. Keep the lights on or save for the month the air conditioner breaks. Go without health care because there is nothing left after housing costs.

This is not about politics. This is about whether a family can afford to live in the city where they work. The solutions exist. Public-private partnerships for workforce housing work. A state catastrophic fund is actuarially sound and delivers massive savings. Capping utility profit at the national average still gives companies a strong return while cutting costs for residents.

The question is whether Florida's leaders will choose those solutions or continue to protect private market interests while families leave the state. David Jolly's plan chooses families.