Facebook
Twitter
Pinterest
Copy Link
In spite of attempts at reform by the Florida Legislature over the last few years, insurance experts say they don’t see insurance premiums coming down any time soon. What’s more, Florida homeowner’s insurance premiums are the highest in the nation – and still rising. Here are some reasons why insurance in Florida is so expensive:
Lawmakers and insurance companies say that “excessive,” “abusive” or “fraudulent” lawsuits are the main culprit for rising premiums. Insurance companies serving Florida have passed the cost of these lawsuits on to the consumer. The legislature’s response has been to pass laws that make it more difficult for homeowners to sue their insurance companies. While some say these laws have stabilized the insurance industry, no one has a timeline for when Florida homeowners might see some relief.
Another problem is a lack of viable insurers. The shrinking pool of insurance companies is also driving premiums up. Since 2017, eleven property and casualty companies that covered Florida have liquidated; five just in 2022 alone. Other major carriers have announced plans to leave the state entirely (Farmers Insurance) or to not renew certain policies (Progressive and AAA). While six new companies have been approved to start coverage in Florida, it remains to be seen if this will create enough competition in the marketplace to bring insurance premiums down.
Increased costs to repair or replace damage in Florida are also contributing to high premiums. Experts say these costs have increased 55% between 2019 and 2022. More frequent and intense weather incidents aren’t helping. Increasing home values are also a major factor. Insurance companies are passing those costs along to the consumer as well.
Sources:
