The Growing Risk for Florida Snowbirds — Why Arizona and California Are Better Bets
For decades, Florida has been the go-to destination for Canadian snowbirds seeking to escape harsh winters and enjoy the sunshine. Its warm weather, relaxed lifestyle, and lack of state income tax have long been enticing draws for retirees. However, with the increasing frequency and severity of hurricanes, it may be time for snowbirds to reconsider whether Florida is still the best choice for their seasonal retreats. Recent back-to-back hurricanes—Milton and Beryl, both Category 4 storms—have brought attention to the rising risks of owning property in Florida. As the threat of severe weather intensifies, alternative destinations such as Arizona and California, both of which offer similar climates but with fewer natural disasters, are emerging as more stable options for property investment. Canadians are estimated to own 500,000 homes in Florida.
Only Chinese buy more homes in the US than Canadians, and part of the reason for this is that 49 percent of Canadian Buyers are buying vacation properties, while only 13% of Chinese buyers are interested din vacation properties.
Florida’s Increasing Vulnerability
Florida’s geography places it squarely in the path of Atlantic and Gulf Coast hurricanes, which are becoming more powerful due to climate change. Warmer ocean temperatures and rising sea levels contribute to more intense hurricanes with higher wind speeds and greater rainfall. The result is increasingly devastating storm surges and flooding, particularly along Florida’s vulnerable coastlines, which are heavily developed with residential properties.
The sheer number of hurricanes hitting Florida over the last few years has been unprecedented, and experts predict that this trend will continue. Hurricanes such as Irma, Ian, and now Milton and Beryl have inflicted billions of dollars in damage, leaving property owners struggling to recover. For snowbirds who spend part of the year in Florida, the risks are clear: property damage, displacement, and in some cases, total loss of their investment.
While Florida's beautiful beaches and year-round warmth are undeniably appealing, the constant threat of hurricanes has created a precarious situation for homeowners. The issue is compounded by the difficulty of securing comprehensive and affordable insurance in the state. Many Canadians who own vacation properties in Florida are now finding that the cost of insuring their homes has skyrocketed to unsustainable levels, if they can even find insurance at all.
Insurance Woes in the Sunshine State
One of the most critical concerns for snowbirds in Florida is the rapidly changing insurance landscape. As hurricanes become more frequent and destructive, insurance companies have begun reassessing their exposure to risk in the state. According to Dr. Ann Meyerson, a real estate expert specializing in the needs of senior homeowners, premiums for homeowner insurance in Florida have more than doubled in some areas, especially for properties near the coast. Many insurers are now either raising premiums significantly or pulling out of the state altogether, leaving property owners with limited and often expensive options.
The average annual cost of homeowners insurance in Florida now sits at approximately US$4,200—nearly three times the national U.S. average. However, premiums can vary dramatically based on location, proximity to the coast, and the home's construction. Properties in flood-prone or high-risk hurricane areas are seeing even steeper hikes in their insurance costs, and some communities are facing a situation where only the state-run Citizens Insurance program is available as a last resort. Citizens Insurance, however, offers limited coverage and is not ideal for those seeking comprehensive protection.
Moreover, many property owners are surprised to learn that standard homeowners insurance policies typically do not cover flood damage, which is often the most significant consequence of hurricanes. Flood insurance must be purchased separately, but only about 20% of Florida homeowners currently hold this additional coverage. This leaves many snowbirds dangerously exposed to the financial fallout of severe weather events. Without proper insurance, repairing or replacing a damaged property could be a monumental financial burden.
Can FEMA Help?
Canadian snowbirds who own property in the United States, particularly in hurricane-prone states like Florida, often face significant challenges in the aftermath of natural disasters. One key issue is their limited eligibility for U.S. Federal Emergency Management Agency (FEMA) assistance. FEMA disaster relief is typically available only to U.S. citizens, Green Card holders, and certain other qualified non-citizens, such as refugees and asylum seekers. This means that Canadian property owners, unless they hold one of these statuses, cannot access FEMA's financial aid or resources to help cover the cost of repairs or temporary housing after a hurricane. Without FEMA assistance, Canadians must rely entirely on their insurance policies or personal savings to cover hurricane-related damages, which can leave them vulnerable, especially in cases where insurance coverage is limited or unavailable. Understanding this restriction is crucial for Canadian snowbirds as they assess the risks of owning property in the U.S.
The Complexity of Managing Properties from Afar
Another challenge for Canadian snowbirds is the difficulty of managing hurricane damage from a distance. Many snowbirds are in Canada during hurricane season, which typically runs from June to November. If a storm hits, they may not be able to return to their Florida property immediately to assess the damage or make emergency repairs. While some rely on local friends, neighbours, or property management services to help in their absence, this adds another layer of complexity, cost, and stress to the situation.
After a storm, it is crucial to document damage quickly, file insurance claims, and arrange repairs. Yet, being physically distant can slow this process, leading to more prolonged recovery times. Even after the immediate aftermath of a hurricane, dealing with contractors, insurance adjusters, and local authorities remotely is far from ideal, especially when the stakes are high.
Arizona and California are Stable, Attractive Alternatives
Given these escalating risks, snowbirds may want to look westward to states like Arizona and California, which offer warm climates and appealing real estate markets without the looming threat of hurricanes. While no location is entirely free from natural disasters, Arizona and California provide more stable options compared to Florida.
Arizona, for instance, offers year-round sunshine, low humidity, and an absence of major storm risks. Its desert climate is predictable, and it has none of the coastal flooding or hurricane risks that are constant concerns in Florida. Snowbirds can enjoy the state’s natural beauty, outdoor activities, and vibrant communities without worrying about the next tropical storm. Moreover, Arizona has a lower cost of homeownership, with average insurance premiums far below Florida’s. For those seeking peace of mind and predictability, Arizona stands out as an increasingly attractive option.
California, while not without its own natural hazards, presents a different kind of stability. Wildfires and earthquakes are concerns, particularly in certain regions of the state, but they are more geographically limited and less frequent than Florida’s recurring hurricanes. Moreover, California’s building codes and zoning laws have been strengthened in response to these risks, offering property owners a higher degree of protection. The state’s diverse climate—from the warm beaches of Southern California to the temperate wine country in the north—offers a range of options for snowbirds seeking a new destination.
In terms of insurance, Arizona and California provide more affordable and comprehensive coverage options than Florida. Homeowners in these states are not subject to the same level of premium inflation and coverage limitations that have become common in Florida’s high-risk zones. Additionally, property values in many parts of Arizona and California have appreciated steadily, making these states not only safer but also potentially more profitable for real estate investments.
A Westward Shift for Snowbirds?
As hurricanes continue to pose an ever-growing threat to Florida, Canadian snowbirds should reevaluate their long-term real estate plans. While Florida remains an attractive destination, the financial and emotional toll of owning property in a hurricane-prone region may outweigh the benefits. With rising insurance costs, increased property damage risk, and the challenges of managing a home from afar, the risks are becoming harder to justify.
Arizona and California, by contrast, offer a more stable and predictable environment for property investment, along with similarly favourable climates. Whether snowbirds are looking for a peaceful desert retreat or a coastal escape, these western states provide appealing alternatives without the constant worry of hurricane damage. By shifting their focus westward, snowbirds can secure their investments and enjoy their winter getaways with greater peace of mind.
In a world where climate change is reshaping the risks of property ownership, adaptability is key. For snowbirds, the question is no longer just where the sun shines brightest but where their investments are safest from the storms ahead.
