While Florida is not on the “most expensive” or “least expensive” list for home insurance rates, Floridians are going to notice a spike in their initial rates. Did you know that homeowners across the state are spending three times more on home insurance than the actual national average? That type of premium is usually coming out to $4,231.
Of course, this will vary depending on the property and other factors but even lower premiums could reach $2,414 a year. That still puts us a bit higher on that list. What many people do not know is that Florida is in a property insurance crisis at the moment.
Unfortunately, this crisis looks as though it will be continuing as the home insurance market is quickly collapsing. This has some Florida homeowners and those looking to purchase in the state a bit worried about what this means. So, what exactly does this issue entail, does it look as though it will dissipate in the near future? How can you combat the expected cost increases, and what does all of this mean for you?
Keep reading as we lay all of this information out on the table and introduce you to a solution that will help you handle these unexpected costs.
Did You Know About the Home Insurance Crisis?
Did you know that Florida was going through a home insurance crisis? Whether you did or you did not, if you are a homeowner, you could potentially be affected. For example, Universal North America has presented a 14.9% increase in rates for homeowners with certain policies. This went into effect in February 2022 and other companies presented similar ratings as well. Companies will blame these surges in cost on the expenses associated with losses experienced by hurricanes as well as the expenses connected to higher loss adjustments.
Florida actually accounts for 79% of the country’s home insurance lawsuits. One of the main issues is that a lot of them are fraudulent. With this high-risk situation involving high ratings of fraudulent insurance claims, insurance companies are encountering a big issue. Underwriting losses of more than $1 billion is that issue and it has been going on for at least 2 years in a row.
Of course, a lot of the actual issues being faced by homeowners are due to natural disasters but this is still causing a problem across the insurance marketplace with no solution in sight. Insurance options for homeowners are becoming extremely limited and this could put homeowners in a bind if their current policy is canceled, will no longer be renewed, or if they experience inflation in policy coverage cost.
What Exactly Does This Mean for Home Owners and Potential Buyers?
Simply putting it, the homeowner insurance crisis is a complete mess and insurance companies know it. A few things that could end up happening are non-renewal notices going out as well as potential cancellations. As we mentioned, you may also experience an increase of close to 15% in your policy cost.
It is important to note that there are some insurance companies that are completely pulling out of the state but this could very well be an issue if you are insured by one of them. Five of the companies that have gone out of business so far are:
- Avatar Property and Casualty
- Lighthouse Property Insurance Corp.
- Weston Property and Casualty
- St. Johns Insurance Company
- Southern Fidelity
If you were insured by any of these companies, you may be wondering how you can combat the costs of reentering a more expensive policy. Also, realize that other insurance companies may fall in line with this but there are two things that you could do:
- Express your concerns to your current policyholder
- Seek out funds to cover the unexpected expenses
While there are just some things that we can not help in the State of Florida such as weather-related risks that come with home ownership and susceptibility to other environmentally related problems, there are some things that can be in our control such as seeking out financial help when we need it.
How BMG Money Can Help
You have been introduced to BMG Money before, a reliable and top-rated loan agency that actually thinks about the person behind the inquiry. Life happens and some things are just unexpected and BMG knows this. When you need a solution to unforeseen financial issues that arise, it is comforting to know that you have somewhere to turn. BMG features better loan offers than most companies and what is even better than that?
- Your credit score is not needed
- Loan Terms offered between 6 and 36 months
- Funding can be accessed instantly
If you are a federal or military employee, there are specialized options for you with an easy-to-navigate online application. With BMG, there are custom options for almost any situation and as you try to ensure your home is covered properly, you should know that you have a knowledgeable and caring financial team in your corner.
Additionally you get more than just loan solutions, you can also look forward to local money-saving resources as well as services specifically for financial counseling. The financial wellness resources that BMG money offers its clients are unmatched. Whether you want a wealth of personal finance information or access to a credit education program, you will have a variety of options to put your financial situation exactly where you want it to be.
If you want to get the funds you need with an easy application, a high acceptance rating, and loans that range from $500 to $10,000, click here.
What You Need, When You Need It
Florida is in a home insurance crisis at this point, and it will not slow down any time soon. According to the Tampa Bay Times, 400,000 people across the state, in the last two years, have had their home insurance policies canceled and this is just a small example to show the momentum of this problem.
Do not allow yourself to experience a lapse in coverage or to go completely uncovered. Instead, reach out to BMG money to discuss your options and to learn more about their services.