Homeowners Insurance
As of April 2023, the state of homeowners insurance in Florida remains one of the most important and critical concerns in our state. Florida has unfortunately been known for our natural disasters, including the unprecedented and disastrous hurricane Ian last year. In the response and recovery we’ve seen in real time how homeowners insurance has become more important than ever for Florida residents.
Trends in Homeowners Insurance Rates
One of the most significant trends in homeowners insurance rates in Florida has been a significant increase in premiums for many residents. According to data from the National Association of Insurance Commissioners, Florida homeowners paid an average of $2,050 for homeowners insurance in 2021, up from $1,933 in 2020. That is now up to $2,385 in 2023 so far! This increase in premiums can be attributed to a variety of factors, including but not limited to:
Natural Disasters - As mentioned above, Florida has of course been prone to natural disasters, including hurricanes, which has caused extensive damage to homes and other property. As a result, insurance companies may increase rates to account for the higher risk of claims.
Construction Costs - The cost of building materials and labor has been on the rise in recent years, which can impact insurance rates. In the event of a claim, insurance companies may need to pay more to rebuild or repair damaged property, which can drive up rates.
Litigation - Unfortunately Florida has seen a radical increase in insurance litigation in recent years, particularly related to claims for water damage. This increase in litigation can lead to higher costs for insurance companies, which may be passed on to homeowners in the form of higher premiums.
Regulatory Changes
In addition to these trends, there have been some recent regulatory changes that may impact homeowners insurance in Florida. One of the most significant changes is the recent passage of Senate Bill 76, which aims to address some of the challenges facing the state's insurance market. This bill includes several provisions that may impact homeowners insurance, including:
Changes to Assignment of Benefits - Assignment of benefits (AOB) is a practice in which homeowners sign over their insurance benefits to a contractor or other third party in exchange for repair services. This practice has been a source of controversy in Florida, with some arguing that it has led to increased litigation and higher insurance rates. Senate Bill 76 includes provisions aimed at curbing the abuse of AOB.
Changes to Roofing Requirements - Florida is known for its frequent hail storms, which can cause significant damage to roofs. Senate Bill 76 includes provisions aimed at improving the quality of roofing work done in the state, which could help to reduce the frequency of roof-related claims.
Changes to Rate Regulation - Senate Bill 76 also includes provisions related to rate regulation, which could impact the way insurance companies set rates in the state. Specifically, the bill includes provisions related to the use of predictive modeling, which insurance companies use to set rates based on factors like credit scores and other data.
Impact on Homeowners
For many homeowners in Florida, the state of homeowners insurance is a significant concern. The rising cost of premiums can make it difficult for some to afford the coverage they need to protect their homes and other property. However, there are some steps that homeowners can take to manage the cost of homeowners insurance, including:
Shopping Around - We offer insurance through over a dozen different carriers to find the right rate and protection for you! It's important for homeowners to shop around and compare rates from multiple insurance companies. This can help to ensure that they are getting the best possible coverage at a reasonable price.
Maintaining Property - Homeowners can also take steps to maintain their property and reduce the risk of damage. This includes regular maintenance, such as cleaning gutters and trimming trees, as well as investing in upgrades like impact-resistant windows and doors.
We’ve been protecting Floridians since 1986 and through many of the worst disasters the state has experienced. Our agents are ready to find the right solution for you and your home today.
