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.