If you’re a homeowner in Florida, you should be prepared for a large home insurance increase next year. This is because of a proposal by Citizens Insurance, the state’s nonprofit homeowner’s insurance company, to increase rates by as much as 11% next year. The request comes as the Florida private property insurance market continues its downward spiral, driven by widespread litigation and roof-replacement fraud. Meanwhile, Florida’s coastal areas have remained relatively untouched by recent hurricane seasons, with most storms affecting the Panhandle, which has far fewer beach homes and other built-up areas. However, this does not mean that Florida homeowners can’t have a choice.
While many homeowners have been aware of the rise in insurance rates due to hurricanes, some have not. Many Floridians have discovered that the cost of a new roof is directly proportional to the value of the home. One homeowner in Seminole County, Marcos Robles, has lived under a tall oak for more than 20 years and noticed that his home insurance policy has increased by $1,000 since last year’s $1500 assessment.
As a result, this increases the cost of property insurance for thousands of Florida homeowners. These homeowners may be able to afford the price increases if they shop around. If they’re willing to take the time to compare quotes from multiple insurance companies, they’ll be able to find affordable homeowner’s insurance. A Florida home insurance increase is also inevitable because the cost of property insurance will increase in the state due to the influx of storm damage claims.
As Hurricane Season looms in the future, many homeowners are preparing for an even higher home insurance increase in the next couple of years. Hurricanes like Harvey and Tropical Storm Irma are increasing the costs of homeowner’s insurance. This is causing insurance companies to spend more money defending their customers from fraudulent and frivolous claims. These costs must be recovered somewhere. That cost will end up being added to the price of homeowner’s insurance.
Another factor driving Florida home insurance increases is the influx of lawsuits. Hurricanes caused billions of dollars in claims in Florida, and insurers passed on many of those losses to homeowners. In the state of Florida, homeowners must pay more than twice as much to protect their homes. The recent rise in reinsurance costs will only compound the issue. The cost of reinsurance is a necessary evil for insurers in hurricane-prone states.
Hurricane season in Florida has pushed up premiums by double digit percentages, according to the Florida Home Insurance Association. These storms caused a spike in premiums for many homeowners, and the current hurricane season has only contributed to the problem. Hurricane Irma and AOB fraud have also contributed to the hikes. This means that many homeowners in Florida will face higher rates in 2020 than their neighbors. While there are ways to mitigate these costs, the reality is that this state will continue to be unaffordable for many people.
There is no quick fix to the insurance price crisis, but there are some proactive steps consumers can take to lower their premiums. Friedlander suggests adding wind mitigation to their homes, bundling car and home insurance, and raising your deductible. All of these proactive steps will help keep premiums low, and will save you money in the long run. If you’re concerned about the rising costs, start taking action today to protect yourself.
Taking preventative measures is one of the best ways to minimize the impact of hurricanes. Florida homeowners have three years to file hurricane claims. Hurricanes cause large amounts of damage, but it doesn’t take much for insurance companies to pay up in the end. Moreover, many hurricanes leave behind a trail of destruction. Taking steps to weatherize your home can help you save money each year on your insurance premiums. A few simple measures can significantly reduce the cost of your home insurance. One of the easiest ways to mitigate hurricane damage is to trim branches off the roof.
Florida is prone to insurance litigation, and the state’s insurance consumer advocate has stated that the costs of bad actors are passed along to homeowners. The FBI estimates that insurance fraud costs Florida homeowners $40 billion a year, and results in an average increase of $700 to $800 in premiums each year per family. The high number of lawsuits filed against insurance companies in Florida stems from third parties who try to profit from insurance policies.