Florida Homeowners Insurance Rate Increase looms

homeowners insurance florida rate increase

Florida residents have a new reason to worry about the looming homeowners insurance rate hike. This state has been battered by inflation and gas prices that are driving up the cost of buildings and insurance. In addition to the rising cost of living, the June 1 start of hurricane season will add to the woes. And a new governor, Ron DeSantis, is attempting to reassure voters that they can expect their property insurance to get cheaper.

Despite rising rates, Florida lawmakers have called for a special legislative session to address the rising costs of home insurance in the state. These lawmakers have approved a package of bills that will help stabilize the property insurance market, including a $2 billion reinsurance fund, money to help homeowners harden their homes, and a discount on premiums. But even if the legislature passes these bills, the state will likely face a looming hurricane season that will force insurers to raise rates once again.

The number of hurricanes predicted for the next five years may also affect the cost of home insurance. Insurers are looking at their loss ratios to determine how much to charge. The last quarter of 2015 saw more than $1.2 billion in losses. These losses are passed on to Florida homeowners, who are already paying higher premiums than before. The average home insurance policy in Florida is up 30-40% from last year, and it has increased over 100% over the past five years. If you do not pay attention to this trend, you may be uninsured.

Several insurers have halted new policies in Florida because of higher reinsurance costs. And the reinsurance cost slowed the growth of Southern Fidelity. The company has 78,000 Florida homeowners insurance policies. Other insurers, such as Southern Fidelity, are not selling new policies in Florida until they can get reinsurance dollars from the state. After the House and Senate approved the legislation last week, the state’s insurance department has passed a bill containing a $2 billion reinsurance fund. The change is expected to be effective in 2022.

The recent pandemic has made Florida’s homeowner insurance market vulnerable to extreme weather events. The 2017-2018 hurricane season has already resulted in significant rate hikes for Florida homeowners in 2019 and 2020. The state has also sought to move its homeowner insurance policies away from the Citizens’ market to the private sector to protect the interests of its residents. Another factor that contributes to Florida homeowners’ insurance rate hike is the widespread practice of AOB fraud. However, this new law is not designed to eliminate the risk associated with extreme weather.

Although the homeowners insurance rate increase in Florida is not unusual, it is still much higher than most other states. Rate increases in other states have been increasing steadily since 2016, but Florida homeowners are expected to experience higher rates this time around. In other words, a 10 percent rate increase in Florida would be almost twice as high as the rate hike in other states. This is a particularly big problem in Florida, as the number of claims this state receives is higher than the national average.

Despite the rise in Florida homeowners’ insurance costs, many Floridians have found ways to keep the cost of their policies affordable. The first tip to keep your home insurance rates down is to shop around for a better deal each year. While some insurers will deny claims, others will offer discounts if you bundle your insurance with other policies, such as auto insurance or life insurance. Many insurers also offer multiple-product bundles, including homeowners insurance and renters’ insurance.

While the increase in homeowners’ insurance rates is unavoidable, the increase is also a result of a more aggressive hurricane season. According to Colorado State University, the next hurricane season in Florida will be even more severe. That means that the state will experience 19 named storms and nine hurricanes. Four of them will be major. That means that homeowners in Florida will face significant rate increases in 2020. Whether you can handle the hike, however, is a question of choice.

Democrats have voiced concerns about the proposed insurance reforms. They wonder if the changes will be enough to decrease premiums. On the other hand, Republicans are concerned about a provision that will prevent insurers from denying coverage to homeowners who have older or newer roofs. They say it will only worsen the state’s insurance crisis. They aren’t the only ones concerned about rising rates. It’s a difficult time to get insurance in Florida without proper coverage.