The homeowners insurance industry is currently going through some fairly major changes here in Florida and I wanted to provide some highlights as to what is occurring. There are multiple things in play that are impacting the state as a whole. The article linked below explains exactly what is going on.
Factors Affecting Premiums
On top of that we have had additional things occurring in the Central Florida area that is hitting us extra hard. Two of the main issues that have contributed to the rising premiums are the overwhelming amount of roof claims that have been filed over the last 2-3 years for hail storms and hurricanes. Accompanying these claims came a bad abuse of assignment of benefit forms, adding to what would otherwise be a “normal” payout. Additionally, water claims have been higher than usual during this same timeframe. These factors along with others explained in the article below have resulted in most carriers going down one of the following paths.
- Many carriers have simply decided to stop writing new business for now in certain zip codes, counties, or altogether, standing on the sidelines to regroup and monitor the situation. Some are even cancelling blocks of business due to “exposure management”.
- Most carriers, to different degrees, have filed for and had rate increases approved by the state. We have seen these range anywhere from 15% to 50%, depending on the county and the carrier.
- In addition to raising rates, many carriers have really tightened up on their underwriting requirements and guidelines. They are placing new age restrictions on roofs, some as young as 10 years old, and in general are placing roof conditions under a microscope when doing their post binding exterior inspections. Some carriers are placing restrictions on how old of a home they will take, placing extra limitations on securing insurance on older homes. In addition, there is a trend for policies on older homes to be issued with limited water damage coverage.
More From Bloomberg
The article, Florida Braces for a Storm of Homeowners Insurance Rate Hikes, helps fill in the blanks and give you the larger picture of what we are going though currently, and what is yet to come, in the State of Florida. Please don’t hesitate to let me know if you have any questions.
Written by Chris Gordon
Advantage Insurance Solutions
Homeowners – Health – Medicare – Life – Auto
Independent Insurance Agency
