To many people, the sky-high home insurance rates in Florida come as a bit of a surprise. Many friends and family often confess to me that, they find it odd that such a sunny, cheerful state should be effected by such catastrophic home insurance rates. However, to many of us Floridians, crazy expensive homeowners policies have become the norm. However, how many of you knew that Florida actually boasts some of the highest home insurance rates in the entire federal republic of the U.S A? I bet that not many of you knew that. Well, now you do. However, if you happen to be lucky enough to live in the sunny state of Florida, you may want to know exactly what these high prices mean.
Ok, so it’s not just the homeowners of Florida who are being effected by the sky-rocketing home insurance rates in Florida. The State’s economy is beginning to feel the pinch. Due to the high prices which homeowners are required to pay, many homeowners budgets are beginning to strain a little. This means that, well, the state of Florida’s economy is not doing as well as other states. As many of you will know, the average premium for home insurance in Florida is around $1933, according to a report published by the National Association of Insurance Commissioners. This price is four times the price of a similar policy in Idaho, which is the cheapest state in terms of home insurance.
In fact, the insurance in Florida is now twice the amount of the national average. A key factor in Florida’s growth as the sunshine state has been, until recently, its glowing reputation for low-cost living. However, this growth is being effected by the increasing insurance rates. People are leaving the state and many people, especially young people, are reluctant to move there due to fears that they will not be able to insure their homes. This means that, there are less people to work in our beautiful state and, anyone could tell you that, this is having negative impacts on the economy.
A Profitable Time for Insurers
Many experts argue that, having affordable home insurance is critical to the economy. The National Association of Insurance Commissioners report, which compiles date from 2011, shows how Florida’s insurance rates have risen in this tiny time frame. Although insurance companies have made a lot of profit, due to avoiding paying hurricane claims, 69% of the rate requests which were submitted to the state regulators, were for increases to insurance prices.
If The Political Leaders Have Taken Notice…
Even political leaders have started to question the sunshine state’s high home insurance premiums and Florida’s chief financial officer, Jeff Atwater, recently asked a state Insurance Commissioner to research home insurance rates in Florida.
Hopefully, in due course, home insurance rates will slowly creep back down. However, in the meantime, you can either sit tight or up sticks. After all, if you can afford the premiums, the Sunshine State has a lot to offer.