{"id":3156,"date":"2023-08-02T07:59:49","date_gmt":"2023-08-02T11:59:49","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3156"},"modified":"2024-04-25T23:17:35","modified_gmt":"2024-04-26T03:17:35","slug":"florida-homeowners-insurance-if-you-can-get-it-costs-a-fortune","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/florida-homeowners-insurance-if-you-can-get-it-costs-a-fortune\/","title":{"rendered":"Florida Homeowners\u2019 Insurance (If You Can Get It) Costs a Fortune"},"content":{"rendered":"\n
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In 2022 and 2023 so far, Fortune <\/em>magazine reports, 15 companies have stopped issuing insurance policies to Floridians. Most recently, it was Farmers Insurance, citing \u201crisk exposure.\u201d (Farmers subsidiaries will keep working within the state.)<\/p>\n\n\n\n

AAA, while not backing out of Florida<\/a> completely, says: \u201cLast year\u2019s catastrophic hurricane season contributed to an unprecedented rise in reinsurance rates, making it more costly for insurance companies to operate.\u201d<\/p>\n\n\n\n

What\u2019s the message here for real estate buyers and owners?<\/p>\n\n\n\n\n\n\n\n

Are Sunshine State Homeowners Being Left in the Shadows?<\/h2>\n\n\n\n

The insurer exodus means fewer companies stay and compete in the Florida market. In other words, homeowners have few insurance choices. To the extent that they\u2019re still active in Florida, insurers have hiked premiums, passing their losses on to consumers.<\/p>\n\n\n\n

And it\u2019s not as if Florida\u2019s house and condo owners haven\u2019t paid their dues. They\u2019ve been paying an average of $6,000 a year. That\u2019s well over three times what most people across the nation pay to insure their homes, according to figures from the Insurance Information Institute. <\/p>\n\n\n\n

And the prices keep rising. Some customers report being left in the lurch by companies that had already jacked up premiums by 25%. Some people are not able to deal with ever-increasing premiums, and are going without coverage.<\/p>\n\n\n\n

Who\u2019s to Blame? Insurance Companies Name Irma, Michael, and Ian<\/h2>\n\n\n\n

The triple whammy of three major hurricanes resulted in close to three million insurance claims. Billions of dollars were paid out. Some companies were strained past the breaking point.<\/p>\n\n\n\n

When insurers go out of business, the Florida Insurance Guaranty Association accepts responsibility for the outstanding claims. (See Florida\u2019s insolvent insurers listed here<\/a>.)<\/p>\n\n\n\n

Ultimately, Floridians shoulder the cost burdens, in the form of policy surcharges. Plus, when customers pay their premiums, they are also funding corporate legal fees. That\u2019s because companies facing litigation pass the costs along to policy holders.<\/p>\n\n\n\n

And we\u2019re not even getting started on the massive replacement costs that have to be covered. Since 2020, both materials and work hours have shot up in price.<\/p>\n\n\n\n

Home Insurers Tied Up in Court: AAA Decries \u201cExcessive Litigation\u201d<\/h2>\n\n\n\n

Eight out of ten home insurance lawsuits happen in Florida. Many of them are not legitimate actions.<\/p>\n\n\n\n

Some involve a common storm-chasing ploy. Construction companies offer inspections to homeowners in the wake of disasters. Then they offer to replace the roofs. After extracting \u201cassignment of benefits\u201d agreements from homeowners, these construction businesses get the rights to file insurance claims related to the damage. When, after an insurance adjuster\u2019s inspection, the payout is less than the amount first demanded, the contractor sues the insurer for the difference. The insurer loses funds whether it litigates or pays the claim.<\/p>\n\n\n\n

For years running, AAA says, \u201cexcessive litigation\u201d has made things hard for Florida home insurers. So AAA announced it would not renew certain high-risk policies.<\/p>\n\n\n\n

Can Something Be Done? The Florida Legislature Responds<\/h2>\n\n\n\n

From 2021 through 2023, as reported by Bankrate.com<\/em>, Florida lawmakers passed several insurance reforms, in order to:<\/p>\n\n\n\n