Insurance Rates

Understanding how insurance rates are calculated and what external forces impact the premiums we are regulated to offer, gives you the peace of mind knowing you and your family are covered in the event of a loss. Learn what proactive steps you can take to reduce your premium in Florida’s volatile market.
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Why Insurance Premiums Continue To Rise

Like many of Florida residents, we have watched homeowner’s premiums escalate in recent years. As a homeowners insurance carrier, we are often seen as the reason for such increases. The reality is the cost of purchasing reinsurance to cover claims in our State has almost doubled. Additionally, the cost to defend frivolous lawsuits brought on by public adjusters, fraudsters, and attorneys seeking to inflate settlements and fees has dramatically impacted the cost of doing business.  Such scenarios serve to exacerbate business costs, which are ultimately passed on to all Florida residents by homeowner’s carriers throughout our State.

The majority of carriers offering homeowners coverage in Florida sought rate increases from 12% to 32% in 2019 and 2020, all in an effort to offset the cost. As a general rule, policyholders see rates increase on all policies, regardless of prior claims history. Those carriers who did not seek rate increases, stopped offering coverage all together until the Florida homeowner’s insurance market stabilizes, or until legislations to curb attorney fees and lawsuits is filed and passed. This makes is difficult for your agent to shop your policy, as other carriers may not be offering coverage in your area.

What We Are Doing to Keep Premiums From Escalating Further

To keep cost from skyrocketing even further, The Florida Peninsula family of companies has streamlined many of our day-to-day business practices. We work with outside vendors to inspect homes via drones and satellite mapping. We introduced a new agent quoting system, Duck Creek, in 2020 which allows our company the ability to pull property information instantly from state and county sources before binding a new policy.  We have also, taken a proactive approach to spreading our risks in a manner which allows our company to capture the best reinsurance rates available.

What You Can Do To Lower Your Premium

With rates being determined by factors such as the cost of reinsurance and holding reserves for future claims, rates will not return to the levels we saw in the past, until laws are changed governing claims and attorney fees. However, as a policyholder, there are a few areas you, and your family can take control to lower your premium, as noted below:
 

Deductible
Increasing your deductible can certainly reduce your premium. To make deductible changes you will need to contact your local agent directly for assistance.

 

Mitigate and Update
Equipping your home with hurricane resistance doors and windows and lower on each opening (including your garage) can reduce premiums, as the State allows carriers to pass along mitigation discounts to policyholders.  Additionally, updating your roof when sign of wear and tear start to appear, will place you in favorable position, and will make your home more attractive to homeowner’s carriers.

 

Get Political
As a carrier there is only so much, we can do to affect change.  We require the support of policyholders, such as yourselves to make your voice heard and demand change.  We have made it easy to contact state legislators by visiting our Legislative Page and clicking on the link to submit your support online.