Why have home insurance premiums been increasing in Florida?

WESH 2 News examines reports of rising home insurance premiums in recent years. If your home insurance premiums haven’t gone up, you’ve probably spoken to a neighbor or friend whose prices are skyrocketing. Officials at the Florida Office of Insurance According to Regulation, there has been a dramatic surge in interest rate hikes over 10 percent. Barry Grimm said he was quite shocked to find out how much more it would cost him to insure his Apopka home. “Last year I paid $ 3,400 for my home owner’s. This year I paid $ 6,600,” Grimm said. WESH 2 News asked Grimm why the costs were up. “I have no idea. The coverage is the same and I’ve never had a claim. They tell me it’s because of the roof and they say if I don’t have my roof within the next year they’ll drop me. And there’s nothing wrong with the roof, “said Grimm. President Kym Rodgers is in a similar situation with her downtown Orlando property. “I bought it as a retirement plan for when I’m old enough not to work, to be an income-generating property,” Rodgers said. “They are still not renewing themselves because they say the roof has reached its life expectancy, which is not true. I will replace this very expensive and good looking roof at my own expense if I want to continue to be insured.” Grimm and Rodgers are not alone. The Florida Office of Insurance Regulation submitted a graph to lawmakers in January showing how much rate hikes have risen across the country since 2016. Of the 105 installment submissions that the department claims to have received in 2020, it approved 55 submissions to increase installments above 10 percent. In 2016, only six of the 64 filings for double-digit rate hikes were approved. Why are property owners paying more now? Commissioner David Altmaier says advertising seems to be the culprit. Altmaier says this ultimately leads to litigation, which then leads to higher costs for insurance companies and negative consequences for consumers. Linda Knudsen is an insurance advisor. Citizens Property Insurance is a government not-for-profit organization that provides final home insurance. “We’re seeing the four-county Orlando area that our insurance policies have more than doubled since 2018,” said Michael Peltier of Citizens Property Insurance. However, not everyone is eligible. Homeowners like Grimm weigh options with their insurance companies. “I don’t want to reduce my insurance coverage. So I may have to go the expensive route and replace the roof within the next year,” said Grimm. The Florida Office of Insurance issued a statement in the ordinance stating, “The Florida insurance market is one of the most complex in the world. The real estate market is currently facing significant challenges as the frequency of claims increases and these claims become more expensive. These challenges are largely due to the rise in litigation exacerbated by higher catastrophe claims resulting from multiple hurricanes in recent years and rising reinsurance costs as a result of a tightening reinsurance market. “Officials in the office also encourage staff to look for the best rates to suit their needs.

WESH 2 News investigates reports of rising home insurance premiums in recent years.

If your home insurance premiums haven’t gone up, you’ve probably spoken to a neighbor or friend whose prices are skyrocketing.

Florida Office of Insurance Regulation officials said they saw interest rate hikes rise dramatically, over 10 percent.

Barry Grimm said he was quite shocked to find out how much it would cost him to insure his Apopka home.

“Last year I paid $ 3,400 for my homeowner’s insurance. This year I paid $ 6,600,” Grimm said.

WESH 2 News asked Grimm why the costs had increased.

“I have no idea. The coverage is the same and I’ve never had a claim. They tell me it’s on the roof and they say if I don’t replace my roof within the next year, they go and I will fall.” And there’s nothing wrong with the roof, “said Grimm.

Resident Kym Rodgers is in a similar situation with her property in downtown Orlando.

“I bought it as a retirement plan when I was old enough not to work to be an income-generating property,” Rodgers said. “They still don’t renew themselves because they say the roof has reached its life expectancy, which is not true. I will replace this very expensive and good looking roof at my own expense if I want to continue to be insured.”

Grimm and Rodgers are not alone.

The Florida Office of Insurance Regulation submitted a graph to lawmakers in January showing how much rate hikes have risen across the country since 2016.

Of the 105 installment submissions that the department claims to have received in 2020, it approved 55 registrations in an effort to increase the rates above 10 percent.

In 2016, only six of the 64 filings for double-digit rate hikes were approved.

Why are property owners paying more now?

Commissioner David Altmaier says advertising is the culprit.

Altmaier says this ultimately leads to litigation, which then leads to higher costs for insurance companies and negative consequences for consumers.

Linda Knudsen is an insurance advisor.

Citizens Property Insurance is a government not-for-profit organization that provides final home insurance.

“We’re seeing the four-county Orlando area our insurance policies have more than doubled since 2018,” said Michael Peltier of Citizens Property Insurance.

However, not everyone is eligible.

Homeowners like Grimm weigh options with their insurance companies.

“I don’t want to reduce my coverage. So I may have to go the expensive route and replace the roof within the next year,” said Grimm.

The Florida Office of Insurance Regulation issued a statement that said:

“The Florida insurance market is one of the most complex in the world. The real estate market is currently facing significant challenges as the frequency of claims increases and these claims become more expensive. These challenges are largely due to increased litigation exacerbated by higher disaster claims for damages resulting from multiple hurricanes in the last few years and rising reinsurance costs as a result of a tightening reinsurance market. “

Officials in the office also encourage people to shop around for the best prices that will suit their needs.

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