If homeowners are looking for home insurance, Florida rates can seem astronomical. Florida is the most expensive state in America for home insurance, and there is little relief in sight. The typical premium for the average house in Florida is close to $2000 per year. That is more than four times the cost of insuring a home in America’s least expensive state. As a result, Florida homeowners insurance is more than double the national average. Furthermore, continued cost increases could threaten the state’s reputation for a low cost of living compared to the rest of the nation.
Hurricane Claims Are Down. Profits Are Up For Insurers
Florida insurers are enjoying good years as hurricane claims are down. As a result, state insurance regulators gave Florida home insurance rates a slight discount. In addition, Florida has recently instituted a state-run homeowners insurance pool called Citizens Property Insurance. It offers more traditional free-market policies provided by private insurers.
Florida Insurance Quotes expected Citizens Property to put downward pressure on rates. Yet, adding Citizens’ data increased average premiums by almost 25%. However, Citizens may cause this increase by offering coverage to homeowners in the riskiest properties. They cover the highest-risk customers who need help finding insurance from other carriers. The risk is why they command the highest premiums in the private market for uninsurable homeowners. Citizens Property accounts for almost 20% of Florida’s home insurance market.
Estimating insurance costs by comparing state averages can be tricky, as there are significant variations in real estate values and potential hazards, including natural disasters and economic conditions.
Homeowners’ Insurance Does Not Cover Flooding.
In Florida, customers are less interested in comparisons to other states. They only need to look at their yearly bill to know how expensive homeowners insurance in Florida is. In addition, some residents have raised concerns about the potential for their insurers to fold. Their demise could be the result of a cataclysmic natural disaster. As a result, it would strain their already shaky reserves despite the high rates they are charging.
It is important to note that the high cost of homeowners insurance is only the beginning for weary Florida ratepayers. Regulators do not calculate flood insurance when discussing home insurance. Sadly, flood insurance rates are skyrocketing too. Damage by flooding is expressly not covered by standard homeowners’ insurance policies. Instead, the government sets rates at the federal level. In addition, flood insurance policies can add thousands more to the cost of insuring a modest Florida home. As carriers single out older homes in low-lying areas for dramatic rate increases, long-time residents feel the pinch.
High Florida Home Insurance Rates Threaten The Reputation For A Low Cost Of Living.
When people move to Florida, they are pleasantly surprised by the pleasant climate, low property taxes, and no state income tax. However, Florida home insurance rates are becoming an unpleasant surprise. As a result, it could eventually make Florida less attractive to new citizens.
Florida Home Insurance Rates Continue To Drop
The premium bill comes in the mail. A familiar scene played out all across Florida. They stand there, shaking their head, wondering why Florida’s homeowners’ insurance rates continue to drop.
Unfortunately, the answer is probably not one they want to hear. According to a recent National Association of Insurance Commissioners report, Florida residents are now paying an average of approximately $2,000 a year for property insurance. That figure is over double the national average of under $1,000 annually. Additionally, owners of Florida condominiums are paying just over $800 a year, while residents of other states pay half that price.
Florida has not seen a significant hurricane in almost ten years. However, Florida homeowners insurance rates continue to climb. In other words, state regulators approve rate increases year after year.
All of that is terrible news. However, the good news is that there are some indications that rates could begin to stabilize. Moreover, they have started reducing in specific zip codes. While that does not offer immediate relief to a family budget, it does provide a glimmer of hope that rates will decrease. Then, homeowners will begin seeing some form of financial relief.
What About Natural Disasters?
Insurance experts working with Florida Insurance Quotes concluded that of the ten most expensive natural disasters in the history of the United States, five have occurred in or affected Florida. Those catastrophes had a devastating impact not only on repair costs but also on reinsurance protection rates.
Despite that, Florida residents and consumer advocate agencies are pushing hard to get homeowners insurance rates in Florida in line with national averages. Furthermore, it is not all bad news. State regulators have voted on numerous provisions that help protect homeowners’ interests over the last five years.
Some of these new or improved provisions include the creation of a mandatory policy checklist. It will become mandatory for insurance agents to complete it. As a result, they explain what the carrier covers under a policy in detail. In addition, insurance companies must pay homeowners upfront for the total replacement cost. In contrast, they used to produce lower cash value on home repairs. Homeowners have also benefited from an expedited claims process. It forces the insurer to respond to a claim or begin communication with an insured customer within 14 days of a disaster.
Floridians welcomed other noted provisions with open arms. Specifically, all Florida insurers must provide an apples-to-apples comparison of rates and policies. This provision has made insurance policy shopping much more straightforward and streamlined for Florida residents. Additionally, the state must now publicize any request for rate hikes of over 15% and hold a public hearing so interested parties can voice and state their opinions.
What does all of this mean for you? Florida Insurance Quotes can lower your home insurance rates for the first time in over ten years. Depending on your zip code, the savings could be thousands of dollars. Some of the best deals come from areas with the most significant rate hikes. Click on “Get A Quote” now, and let us get to work saving you money on your Florida homeowners insurance rates today.