Florida home insurance premiums are increasing at an astronomical rate. The insurance market is suffering due to increased costs in claims, attorney fees and fraud. Many companies are not writing new policies and are canceling policies, forcing Floridians to have to look for new coverage. Although the State Legislature held a special session last month, there are no quick fixes to the situation. This could not happen at a worse time. Hurricane Season has just
started. Agents are struggling to find replacement coverage for their clients. Companies have tightened their underwriting requirements and many people
cannot meet them. If the home qualifies, they are now being written with Citizens Insurance, the State of Florida Insurance Company. Known as the insurer of last resort, Citizens has become the “go-to” company for agents in Florida. They do have limits and restrictions on some coverages. But it might be the only solution. To help the insured prepare to “shop” their insurance, they should be prepared for a 4-point inspection and mitigation inspection.
These inspections are used to qualify the property for discounts that might be available on the policy. These inspections look at the age of the roof, electric and plumbing. They also provide the insurance company with an idea of what mitigation has been done to the house. These include hurricane shutters, roof tie-downs, and how the roof was constructed. The safer the structure the better chance one has of receiving a quote from more than one insurance company.
During the special legislative session, the state tried to come up with ideas to stabilize the market. Over the past 5 weeks, more than 5 companies have been sent to receivership and are basically out of business. This flooded the market with people looking for insurance and is putting a strain on the market capacity. One of the solutions the legislature passed was to stop canceling policies based on the age of the roof. Under the new law signed by Governor DeSantis, companies cannot cancel a policy just for having a roof for over 15 years. They do require the roof to have at least five years of life left. The legislature also set aside money incentives for homeowners that make storm-related improvements to their homes. It’s unknown if these new laws will help the market. Until the fraud and the limit on attorney fees come under control, it will be hard to see any relief. Reviewing your coverage with an agent to make sure you have the proper limits and coverages can help. With inflation affecting the price of everything, the insured will need to make sure they are protecting their home properly. OurSeniors.Net strives to bring valuable resources to seniors and retirees through our senior online and print magazine www.ourseniors.net also check us out on Facebook. Steve Clein is an insurance agent with over 30 years of experience. He is the owner of C & C Insurance located in Pembroke Pines and is the current Chairman of the Florida Association of Insurance Agents (FAIA ). www.CandCInsurance.com; steve@candcinsurance.com.
