Florida Homeowners See More Options for Insurance

At last! Florida homeowners have more options for homeowner’s insurance!

As what is predicted to be an “above-normal” hurricane season began June 1st, many insurers in Florida have been dumping policies to avoid the high risk. Luckily homeowners have several new insurance options in addition to the companies already  writing policies in Florida. In fact, Florida is the only state where new insurers are entering the market at high volume. Says Mark Friedlander, spokesperson for the Insurance Information Institute, Insurers feel they can profitably write home insurance in Florida due to the legislative changes that eliminated the drivers of legal system abuse and claim fraud that led to our state’s risk crisis.”

And here’s the best part: more insurers in the marketplace often leads to more competitive premiums. This could mean lower rates for Florida homeowners. Now that there are more options, homeowners can shop around for coverage instead of being stuck with little coverage, high premiums and high deductibles - something Floridian’s haven’t been able to do in the last few years.

Jeff Brandes, a former state senator and tireless advocate for insurance reform in Florida, says many of the “new” companies are not actually new. He says, some are spinoffs or subsidiaries of existing Florida companies, while others are new to the state or are reactivating their presence here.” Four of the new insurers are following a model known as a reciprocal insurance exchange. In an exchange, policyholders (subscribers) are considered owners and insurance claims are paid out of something like a mutual fund. Subscribers pay into the fund and then assume each other’s risk. If a subscriber has to file a claim, each policy is charged an equal amount to cover the loss. If the losses are low, then subscribers receive a share of the profits. Subscribers generally have lower premiums and they have a say in the operations of the business. The downside: If there aren’t enough subscribers, premiums can go up.

As always, it pays to shop around. Make use of your resources such as a reputable insurance agent, your favorite Realtor® or recommendations from family and friends.

Source: https://www.orlandosentinel.com/2024/05/24/florida-homeowners-finally-have-some-new-insurers-to-consider/