Florida home insurance price increases are not uncommon. In fact, they are among the highest in the country, according to S&P Global Market Intelligence. The increased risk associated with hurricanes, wind mitigation, and political unrest is a contributing factor. Hurricanes such as Hurricane Irma also contribute to the hike. However, the recent crackdown on AOB fraud may have helped mitigate the situation. Regardless of the cause, you can expect to see an increase in your premiums in the coming months.
A rising cost of doing business has prompted some insurers to reduce their Florida policies. In fact, some companies have discontinued writing policies in Florida because of the high premiums. That reduces choices for consumers. However, some companies are not giving up on Florida just yet. Here are some reasons why your Florida home insurance price will continue to rise. For more information, visit the Florida Office of Insurance Regulation. These organizations are responsible for overseeing the state’s insurance industry.
Another factor that contributes to rising insurance costs is new roofs. According to Blanchard Insurance, Florida property insurers paid $15 billion in claims costs between 2013 and 2020, with lawyers’ fees making up the majority of this cost. This increase in costs is largely due to recent increases in the cost of reinsurance. Reinsurance is insurance for insurance companies and is necessary in hurricane-prone states like Florida. If you’re considering a new roof, make sure you get a quote for the same coverage amount.
Other factors contributing to the home insurance price increase in Florida include the bankruptcy of many insurance companies and an unnamed carrier that won’t write new policies in the state. Additionally, the increase in rates may be caused by hurricane season, which impacted the state’s home insurance prices last year. In Florida, the cost of home insurance is the highest in the country, but the state legislature is seeking faster solutions to stabilize the price increase.
While the increase in premiums isn’t a guarantee, insurers are using historical losses to help determine premiums. This means that a home that has a history of losses will have higher premiums than a home that has never suffered a loss. Additionally, a home that is susceptible to hurricanes may not be eligible for coverage. In the past, Allstate and Chubb increased their prices without making a loss on claims. However, it’s hard to predict how much the rates will increase in 2020.
While there are many factors contributing to the price hike in Florida home insurance, the recent legislative reforms might help homeowners. First, the state’s legislature will likely curb the abuse of assignment of benefits, a legal procedure that allows third parties to sue insurance companies directly. This is one of the biggest reasons for the rise in Florida home insurance prices, and has forced many insurers to leave the state. Another contributing factor is the soaring number of lawsuits filed in Florida.
Homeowners insurance costs in Florida have increased as a result of recent record-setting natural disasters and the cost of construction materials. Excess lawsuits and false claims are also blamed for the price hike. The average Florida home insurance price for a standard policy is $2,414 a year, or $201 a month. Most insurance companies offer discounts for good driving records and other safety practices. But these factors make insurance in Florida more expensive than it needs to be.
If you’re interested in getting affordable home insurance in Florida, compare the companies and policies to determine which one suits your needs best. Some insurers offer discounts for bundling policies, but others are better than others. A rating of four stars from AM Best reflects the strength of a company, so look for one with an A+ rating. Likewise, look for a company with favorable customer service scores. Lastly, consider the financial strength of your insurance company. While the price increase may be temporary, it is unlikely to change your policy.