Florida property insurance rates expected to jump 40% to 50% in June (Tampa: lawyer, homes)

[wondermint2]

Florida’s homeowner insurance rates are four times the national average. That’s not getting better anytime soon

https://amp.cnn.com/cnn/2023/06/01/b...tes/index.html

National insurers have very little presence in Florida. Big insurance companies dominate more than half the market in the rest of the country. But in Florida, State Farm has about 7% of the market, according to the Insurance Information Institute, an industry trade group. No other major insurer has as much as 2%.

Meanwhile, the regional and local insurers left to provide coverage are in bad shape. Just more than half of insurers based in Florida are on the state insurance regulator’s watch list due to their financial health. Six were forced to liquidate last year, another one earlier this year. And to try to stay solvent, the remaining insurers are charging rates nearly four times as high as the national average. Homeowners in the state pay private insurers about $6,000 a year, compared to a national average of $1,700.

[wondermint2]

New law prohibits insurance companies from altering claim estimates

https://winknews.com/2023/06/01/new-...ane-estimates/

John Fuentes owns All Service Adjusting, a public adjusting firm based in Naples. He hears horror stories day in and day out.

And after taking deeper dives into some of those cases, Fuentes discovered some insurance companies changed their own estimates in order to pay his clients less. In one case, the insurer’s field adjuster said Fuentes’ client needed a new roof. Documents later showed a desk adjuster changed that to the roof only needed to be repaired so the homeowner only got about $11,000.

“They’re committing fraud. It’s a serious thing,” Fuentes said. “This homeowner was not made whole again.”

Independent adjusters warned state lawmakers about this issue prior to this legislative session.

“This fraud committed by some of the insurance companies is more widespread than any of us could have imagined,” one independent adjuster said to the Commerce Committee meeting during the second property insurance special session in December 2022.

Lawmakers responded by passing the Insurer Accountability Act. Governor DeSantis signed the bill into law Wednesday which makes it a crime for insurers to change adjusters’ reports without detailing who made the changes and why. They’ll also have to keep tabs on any edits made and preserve all versions of their reports. Finally, insurance companies will have to tell the state how they handle claims.

[MOforthewin]

Originally Posted by wondermint2

New law prohibits insurance companies from altering claim estimates

https://winknews.com/2023/06/01/new-...ane-estimates/

John Fuentes owns All Service Adjusting, a public adjusting firm based in Naples. He hears horror stories day in and day out.

And after taking deeper dives into some of those cases, Fuentes discovered some insurance companies changed their own estimates in order to pay his clients less. In one case, the insurer’s field adjuster said Fuentes’ client needed a new roof. Documents later showed a desk adjuster changed that to the roof only needed to be repaired so the homeowner only got about $11,000.

“They’re committing fraud. It’s a serious thing,” Fuentes said. “This homeowner was not made whole again.”

Independent adjusters warned state lawmakers about this issue prior to this legislative session.

“This fraud committed by some of the insurance companies is more widespread than any of us could have imagined,” one independent adjuster said to the Commerce Committee meeting during the second property insurance special session in December 2022.

Lawmakers responded by passing the Insurer Accountability Act. Governor DeSantis signed the bill into law Wednesday which makes it a crime for insurers to change adjusters’ reports without detailing who made the changes and why. They’ll also have to keep tabs on any edits made and preserve all versions of their reports. Finally, insurance companies will have to tell the state how they handle claims.

Our old insurance company tried saying we just needed a few shingles replaced after the 2021 dec wind storm. Despite all the shingles were loose and trashed. Roofer fought them and we got another adjuster who took propert photos. Finally got approved.

June 2022. If we had the tarp still during ian we probably would ahve lost our house possibly due to water damage and gut it. New roof lost only 6 shingles in ians eyewall!

[blueskies2023]

Originally Posted by Above Average Bear

Dang, a $7000 property tax bill plus a 6 or 7% mortgage rate. That will drive inventory up and house prices down.

Edit, I just saw that Americans are into 986 Billion in debt. Add in inflation.
This is a really interesting time!

Don't forget the added high increase in insurance for the home (and cars) plus probable HOA increases as most of the state were dead set on gated planned communities.

[blueskies2023]

Originally Posted by NSHL10

I am not a transplant yet. Thinking about it, will need to see how the property insurance problems works out and if there is enough of a reduction in home prices to justify coming down. Florida property values historically rise and drop like a roller coaster, so I would think there will be some sort of settling or reduction of prices, particularly if the property insurance problem isn't fixed. I also am concerned if the area is being overbuilt for my tastes.

If Florida as a whole is worried about transplants coming in, the govt could buy up the farms and large parcels of property used for developments and keep it as protected land that can't be built upon. We do that in NY, but it requires tax money and native Floridians aren't too keen on spending money.

Florida survives on transplants and tourists. That basically is your state's economy. If you don't want an economy run on that, you will need to find another state. The hotel tax, sales tax, transfer taxes, and holding off of Homestead tax reduction to transplants is what funds your state and prevents the state from having to implement an income tax. It is kind of ironic that a state which touts freedom so much is so beholden to us tourists and transplants for its economic survival.

Your governor is very proud of the huge influx of newcomers, claiming it is due to policies that he has helped initiate. Maybe you need to give a call to Tallahassee and have him tone down his rhetoric and the massive amounts of advertising he spends on NY TV to draw us down there. Apparently he is actively courting us "TOXIC" New Yorkers to bring our money down with us to support the state and the natives.

If I were to move down, I wouldn't be concerned about what another person thinks of me. I am not in the 3rd grade anymore. If they don't like like my TOXIC ass , they can move.

So basically, people adapt or die. This is the new Florida: getting crowded and congested with the blessings and active encouragement of the state and local governments. If this is no longer a place you want to be in then move to a place that more resembles what you want. Bitching at transplants isn't going to help.

Yep. Come! they said, the sun is shining, it's half price on all, no state tax!

[blueskies2023]

Originally Posted by bale002

About a month ago, I compared Florida average property insurance rates with other states and was surprised to see that they can be nearly as high or even higher in other coastal states and some in tornado ally as well.

So while high property insurance rates may dissuade some people from buying in Florida, they are not a reason by themselves to sell and move to a less desirable state.

As mentioned, it helps to have an experienced agent and do the possible to mitigate the costs.

Good Luck!

What? it absolutely is a reason to move. Have you seen the increases? Not to mention a host of other large increases just for our homes???

[Dave_n_Tenn]

The law of supply and demand still applies. If Florida wasn't so popular as a residential destination, prices would be lower. Ask anyone from North Dakota.

[wondermint2]

Florida considering Citizens request for double-digit rate hike

https://www.msn.com/en-us/money/insu...05da01a2&ei=31

Citizens Property Insurance is asking state regulators to approve another rate hike.

During a public rate hearing in Tallahassee on Thursday, the state’s insurer of last resort said they need a double-digit increase.

But why? Will it happen and when? 8 On Your Side Investigator Mahsa Saeidi has the latest details.

Whenever a private insurance company wants to increase rates, they must ask the state for approval. But when Citizens wants to do it, they don’t just have to ask—they also have to hold a public hearing and make their case.

On average, they want to raise rates for homeowners approximately 12 percent, effective Nov. 1.

[Dave_n_Tenn]

In most regulated services like insurance, electric utilities, water & sewer etc, there is an 'allowable' "rate of return". The usual number that I'm familiar with is 8-12%. That is how much they can earn after operational expenses.

They can make less especially when they screw up, but not more. Usually when they make less then their allowed RoR, they ask for a rate hike. If they make more, then rebates or credit is issued.

I do not know the Citizens accounting. However when I worked for a Investor owned utility the rate increase team was very large and their work was very forensic... they rarely didn't get what they asked for.

** Inflation plays a part in rate increases.

[Sunshine Rules]

According to Citizens, they told Florida's Office of Insurance Regulation, the decision-makers, they're trying to offset non-weather related water losses, high reinsurance costs and a glut of litigation.



Here's another "fun" fact for everyone: Litigation costs are 17% higher in Florida than other states that are catastrophe prone. Florida insured’s paid between $2 billion and $2.7 billion in costs allocated to suits in the form of increased premiums. Thus the rates of insurance premiums increased for the consumer. Plaintiff attorneys receive 7% of insurance litigation cash flow.



Auto insurance? “PIP is riddled with fraud. It is a problem,” says Michael Carlson, President and CEO of the Personal Insurance Federation of Florida (PIFF). “We have state law enforcement constantly working to root it out, to prosecute those folks who commit it.”

That fraud plays itself by in several ways, Carlson says, such as a “whole cottage industry of phony medical providers” that send fraudulent medical bills to auto insurance companies. “They’ll charge soft-tissue treatments of various kinds…they’ll charge it until they hit $10,000 and then suddenly that patient is fine, and they won’t charge anymore.” There are also incidents with motorists staging accidents, and Tampa and Miami are known as being among the top cities in the country where such fraud is prevalent.

Another factor in driving up rates that hasn’t been addressed by state lawmakers is glass replacement fraud. This is where contractors literally will go after motorists in parking lots, gas stations or knock on their front doors to inform that they can have their windshields replaced for no cost if they have comprehensive insurance coverage, which about 90% of Florida drivers have, according to Mark Friedlander with the Insurance Information Institute.

What motorists don’t realize, however, is that once they sign the paperwork with those contractors to get their windshield replaced, they have “assigned” a law firm to handle the issue with their insurance company. That assignment of benefits (AOB) with auto glass has led to an explosion of lawsuits filed in Florida over the past decade by more than 4,000%.



Notice the pattern here?