Are you a Florida homeowner? Are you worried about the increasing home insurance rates in Florida, especially with the long-term impact that 2023 will bring? You’re not alone.
Rates are on the rise across many parts of Florida as more people choose to buy and renovate homes here. This can make it difficult for homeowners like you to find affordable coverage.
In this post, we’ll outline what you need to know about rising home insurance rates in Florida. That way, when renewing your policy or shopping around for new ones, the process is easier, and you can make more informed decisions about the best type of coverage that’s right for you and/or your family’s situation.
WHY ARE HOME INSURANCE RATES GOING UP IN FLORIDA?
Home insurance rates have risen in Florida over the past few years and are expected to continue increasing in 2023. This is because of various factors, including increased natural disasters, insurance industry changes, and inflation.
How Do Increased Natural Disasters Affect Insurance Rates?
One of the main reasons for increased home insurance rates is an increase in natural disasters. Florida is susceptible to hurricanes and other extreme weather events, so insurers face higher costs because of more frequent claims from homeowners who have had their properties damaged by storms. As a result, insurers must raise their premiums to stay financially solvent.
How Does Inflation Affect Insurance Rates?
Finally, inflation also plays a role in rising home insurance rates. The cost of goods and services has been growing, and unfortunately, wages have not kept up with this trend, making it harder for people to afford necessities such as homeowners insurance coverage. Insurance companies are seeing a massive price increase for parts and building supplies, making it more expensive to pay claims when damages happen. As a result, insurers must raise their premiums to keep up with inflationary pressures and remain profitable while providing good coverage options for their customers.
FLORIDA HOMEOWNERS INSURANCE INCREASES
So How Much Are We Looking At For Florida Homeowners Insurance?
The projected rate increases for Florida homeowners insurance in 2023 are significant. Residents of the Sunshine State can expect costs increasing 10-60%, depending on the type of policy.
These increases could impact current homeowners’ affordability and make it harder for new buyers to enter the market. While we may not know precisely how insurers will respond to the ongoing challenges in 2023, changes are coming.
Floridians need to stay informed about their coverage options so that they’re equipped to decide and plan accordingly. By anticipating potential rate hikes now, you can be prepared and more likely to get the best deal possible when it comes time to re-evaluate your policies.
What Is FIGA?
With its role in protecting consumers from financial losses because of insolvent insurers, the Florida Insurance Guaranty Association (FIGA) often steps in when an insurance company goes bankrupt. When this happens, FIGA takes over all the claims from the now-defunct company and pays out any premiums previously paid by policyholders.
To help cover this cost, the Florida Office of Insurance Regulation has approved a surcharge of 0.70% for existing insurance companies in the state because of several insurance companies going under last year. This surcharge is just one-way FIGA helps to ensure that policyholders are always protected in case their insurer shuts down.
SOLVING THE INSURANCE CRISIS IN FLORIDA: SENATE BILL 2-A
The insurance crisis in Florida is a serious issue. Since 2015, insurance premiums have skyrocketed by as much as 70% because of fraudulent claims and assignment of benefits (AOB) scams. Homeowners are struggling to keep up with the skyrocketing costs, which can ultimately devastate Florida property owners.
Thankfully, there is a light at the end of the tunnel. In December 2022, the state legislature passed Senate Bill 2-A, which has many provisions to curb these fraudulent activities and restore trust in the insurance system.
How Senate Bill 2-A Is Helping Florida Homeowners
Senate Bill 2-A includes several key components to help make insurance more affordable for Floridians.
- ● The bill imposes restrictions on AOBs by requiring insurers to review all invoices before payment and limiting attorney fees for non-litigation cases to $4,000 or less.
- ● Contractors and public adjusters must inform homeowners they can seek help from their insurer before signing an AOB agreement or filing a claim with their insurance company.
- ● Finally, it also prohibits insurers from canceling policies if the policyholder has reported fewer than three claims within two years.
Besides these provisions, the bill implements reforms that will make it easier for homeowners who have been victims of fraud or abuse by contractors or public adjusters to file complaints against those individuals without fear of retribution from their insurer. This measure should protect homeowners from unscrupulous actors who may try to take advantage of them to get inflated settlements and exorbitant attorney fees out of them.
By implementing these provisions, Senate Bill 2-A has laid the groundwork for meaningful reform in the insurance industry so that Floridians can once again trust that they are getting quality coverage at an affordable price. Thanks to this legislation, homeowners now have more helpful protection against fraud and abuse while still having access to high-quality policies through reliable providers they can trust.
In summary, it’s incredibly important for Floridians to stay up-to-date on the latest happenings in their homeowners insurance plans. If you aren’t sure of the current trends that are acting as the fuel behind rising insurance rates, keep coming back to SimplyIOA. Your home and livelihood are too important to ignore such matters. With some savvy decision-making and comprehensive coverage under your belt, you can bet that you’ll be prepared for anything that comes your way.
If you need help finding the best homeowners insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get a homeowners insurance quote online now.
