If you’re wondering how you can prevent a home insurance Florida increase, you’ve come to the right place. Florida homeowners have been realizing that a new roof increases insurance rates for several years. Marcos Robles lives under a canopy of tall oaks in Seminole County. He bought a new roof about a year ago, but now his policy costs $1,000 more than last year. The reason for the increase?
While the state is struggling to combat the rising cost of property insurance, it can be done. Homeowners in Florida can save money by comparing multiple insurance companies and taking advantage of discounts. Though Florida home insurance rates remain relatively high, the state will likely continue to see an increase in the year 2021, which is mainly because of the high amount of storm damage claims. You can save money by comparing premiums from different companies to find the best one. To do this, use a site like Credible, which offers free insurance rate quotes for homeowners.
While the state legislature has not passed a bill that would limit the amount of homeowners insurance Florida companies can charge, the recent saga of insurers has caused a spike in premiums. Several private insurers have filed for receivership in Florida since 2014, and the state is attempting to stabilize the market for the state’s homeowners. As a result, more Floridians are turning to the state-subsidized Citizens insurance.
The proposed increase in home insurance Florida rates is an attempt by one of the largest insurance companies in the state. Among the companies requesting rate increases is the Castle Key Insurance Company, which is looking for approval. The proposal is steep, and many regulators have condemned it as excessive. One Castle Key executive has explained that consumers could face a 68% increase in premiums next year. While the company’s claim may seem a little steep, it is necessary to offset underwriting losses in the state.
Although Citizens Insurance has a long history of putting its customers first, the company is facing the highest price increases for homeowners insurance in Florida. In fact, its rates have risen over the past two years. But the increase isn’t the only factor. The increase is also driven by a surge in fraudulent claims against it. Moreover, many private insurers have failed to cover the costs of these claims. The cost to consumers is on the rise because there are fewer insurers.
There are several factors that affect the cost of homeowners insurance in Florida. The hurricane season from 2017-2018 caused significant rate hikes for Florida homeowners in 2019 and 2020. AOB fraud has also played a role in raising Florida’s homeowners insurance rates. As a result, there have been reforms to prevent fraud in Florida. The increase in the cost of homeowners insurance in Florida is more than three times higher than national rates. While it is a good sign, it’s important to remember that Florida’s premiums are higher than the average across the country.
Homeowners insurance can increase your premiums if you own a special type of home with features such as swimming pools, spas, or playrooms. These features increase your repair and replacement costs, and they may also add liabilities. If you have recreational features such as a pool or spa, you may need more liability coverage than you originally bought. Another factor that affects your insurance rates is where you live. Certain areas of the country have higher fire and wind damage than others, so it is important to review your policy annually to ensure that you’re covered.
Another factor contributing to an increase in Florida homeowners’ premiums is the increasing costs of Hurricane Irma. The hurricane affected the state’s economy by over $67 billion. It also damaged the reinsurance industry, with $32 billion in losses attributed to fraudulent claims. As a result, homeowners are being forced to look for coverage from Citizens, a state-run insurer of last resort. As a homeowner, you’re required by law to have property insurance in Florida. However, if you own the home outright, you’d have to pay the full cost of repair yourself.
As an added benefit, you’ll want to consider purchasing a renters policy. Renters policies cover both personal property and liability. Renters policies are generally offered by many insurers and are less comprehensive than HO-2 policies. Depending on the amount of coverage you’re looking for, this form may be the only option available to you. Also, you can get coverage for other types of risk that a homeowner’s policy won’t cover, such as a home that’s over ten years old or is rented out.