Florida property insurance rates expected to jump 40% to 50% in June (Tampa: fit in, credit score)

[Corrie22]

guys, you're missing the biggest bear in the room

(S.B.) 2-A eliminated the ability of homeowners to assign benefits....on policies written after Jan 1, 2023

....that is the biggest driver for insurance companies to come up with a way to make you get a new policy....written after Jan 1, 2023

[StraightTalker2022]

1. AAA will not renew the auto and home insurance policies for some customers in Florida.
2 & 3. Bankers Insurance and Lexington Insurance, a subsidiary of AIG, left FLA last year.
4. Farmers will NO longer provide Insurance in the State of Florida
5. At least one of Allstate Insurance group’s Florida subsidiaries plans to non-renew 33,000 Florida condominium policies, starting in June.

In a notice sent to Florida agents this month, Allstate said its Castle Key subsidiary had sent a letter Jan. 11 to the Florida Office of Insurance Regulation about dropping the coverage. The letter was marked “trade secret,” so details about the policies were not made public by the OIR.

Companies in Liquidation
AMERICAN CAPITAL ASSURANCE CORP
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY
FEDNAT INSURANCE COMPANY
FLORIDA SPECIALTY INSURANCE COMPANY
GUARANTEE INSURANCE COMPANY
GULFSTREAM PROPERTY AND CASUALTY INSURANCE COMPANY
PHYSICIANS UNITED PLAN, INC.
SOUTHERN FIDELITY INSURANCE COMPANY
ST. JOHNS INSURANCE COMPANY, INC.
UNITED PROPERTY & CASUALTY INSURANCE COMPANY
UNIVERSAL HEALTH CARE INSURANCE COMPANY, INC.
UNIVERSAL HEALTH CARE, INC.
WESTON PROPERTY & CASUALTY INSURANCE COMPANY
WINDHAVEN INSURANCE COMPANY

This is the tip of the Iceberg!

[Travelassie]

Originally Posted by wondermint2

Here are the homeowners insurance companies still active in Florida

https://www.clickorlando.com/news/lo...ve-in-florida/

With Farmers Insurance soon leaving Florida’s insurance market, many Florida homeowners are now forced to start looking for new companies to work with.

The Florida Officer of Insurance Regulation lists insurance companies still in operation around the state, and the agency allows homeowners to view prospective prices online.

Among the companies that are still active in Florida are the following:

Stillwater Insurance Group
Tower Hill Insurance
Allstate Insurance
Citizens Property Insurance Corporation
Liberty Mutual Insurance Group
Florida Family Insurance
American Strategic Insurance
Universal North America
State Farm
Security First Insurance
Florida Peninsula Insurance Company
Bankers Insurance Group
Frontline Insurance
Auto Club Insurance Company of Florida
Southern Oak Insurance Company
Universal Property
People’s Trust Insurance Company
Florida Farm Bureau Insurance

To that list I would add:

Cypress
Cabrillo
Slide
American Integrity
Centauri
Geo Vera
USAA ( to veterans, members of the military and their families)
and our current insurer, Monarch National ( who as it has turned out, has done a decent job with paying our Ian damage claims.


This list was sent to me by our independent insurance agent ( Whitco) and represents insurers willing to insure our house. She pointed out that any number of insurance companies, while they aren't leaving the state, have placed restrictions on the properties they are willing to insure. Some will not write new policies on homes over a certain age, within a certain proximity of the coast, with roofs over a certain age. In checking out new insurance companies, this must be considered.

[wondermint2]

Citizens Property Insurance to hit 1.7M policies after other companies pull out, issue non-renewals

For full article:

https://news.google.com/articles/CBM...S&ceid=US%3Aen

Citizens Property Insurance is on track to hit 1.7 million policies by the end of the year. It’s more than triple the number of policies it managed just three years ago.

Many of those impacted by Farmers’ decision to pull out of Florida will likely have to sign on with Citizens.

From policyholders and taxpayers to politicians and insurance agents, many have voiced their concerns about the rapid growth of Citizens.

Before the announcement from Farmers, Citizens reported it had 1.3 million policies. That’s nearly 100 thousand more than what IT had in June 2022 and nearly double than in June 2021. In addition, AA has announced it will not renew policies for some Floridians.

The growth raises the question of if Citizens is prepared for what’s to come.

“Citizens was designed and created actually as the state’s insurer of last resort. So what the market is, is healthy, our numbers go down. And when the market is facing challenges, like we’re seeing right now, our numbers go up. That’s why we were created,” said Michael Peltier with Citizens.

Last month, Citizens reported it had a total of 1.3 million policies, the most ever at an end-of-month count in the last 10 years. It’s expected to grow by 400,000 additional policies by the end of the year.

Insurance expert Tom Cotton says Citizens has been well structured and managed financially. “But this growth is going to stretch that capacity. The other area where they’re going to be stretched is staffing and processing, the huge influx of policies that could be coming their way,” Cotton said.

As for Citizens, the concern with growth is not about finances but the overall financial exposure and where the money will come from to ensure policyholders’ claims will be paid.

“The concern that we have is as we get larger as we get bigger, and our policy count swells, our exposure swells. And the risk that we’ll have to either levy assessments on Florida, consumers or our own policyholders increases as our policy count decreases,” Peltier said.

[wondermint2]

Lakewood Ranch Condo Association’s property insurance spiked nearly 1,000% — Here’s why

For full article:

https://www.msn.com/en-us/money/real...aed9f1a1&ei=32

These folks live in a condo association. 8 On Your Side learned they did something that would make them undesirable to insurance companies in a normal, healthy market.

In this market, the fallout is severe. It’s a gated golf course community in Lakewood Ranch. There are four units in each building. It’s a picturesque lifestyle that’s now suddenly coming with an alarming price tag.

“You know, I just can’t believe this is happening to us,” said Richard Falco.

Inside one unit on Tuesday, neighbors grappled with an unexpected property insurance spike.

“Insurance companies talk to insurance companies, and that’s why no one else will insure us,” said Carol Cameron.

Each condo owner has to pay for two policies. The individual policy, which covers the unit and the HOA’s master policy, which covers common areas.

The master policy is the problem. The premium has spiked almost 1,000%.

In total, 56 condo unit owners used to pay approximately $56,000 a year. Now, it’s more than half a million dollars. Falco is one of 50-plus homeowners impacted.

“I can’t afford it. I’m a retired school teacher on a budget,” said Falco. “I have to come up with, what is $890 a month to pay for this insurance that there’s absolutely no coverage.”

Why is this happening?

8 On Your Side obtained the insurance proposal prepared for the condo. It shows the condo’s insurance broker went to carriers across the state.

They declined, declined, declined.

Citizens, Heritage and others noted an open construction defect lawsuit. In court, neighbors have claimed some buildings have a defect.

Multiple brokers tell 8 On Your Side that spells trouble to insurers. In a normal market, you’d have trouble getting a good deal. Now, it’s nearly impossible.

Only one company would take the risk: Lloyd’s of London. The carrier is known for taking on policies that others reject.

“If a big storm comes and hits everybody?” asked Investigator Mahsa Saeidi.

“Yes, we’re going to be done,” said Cameron.

The policy only covers up to $2.5 million of damage per hurricane. It’s supposed to cover 56 units. That’s another reason residents are not happy.

[wondermint2]

Englewood couple hires attorney during insurance dispute over Hurricane Ian damage

For full article:

https://www.fox13news.com/news/flori...ricane-ian.amp

In Englewood, Chrissy and Stephen Spaziani had their home appraised 10 days before Hurricane Ian because they were planning to refinance. That fell through with their ceilings.

"At nighttime, if we’re sitting in here—this is where I’m afraid a critter is going to come flying in," said Chrissy as she pointed to large holes in a front room ceiling.

When the hurricane passed, they discovered shingles blown off their roof, wet walls, and then large bubbles breaking out on their ceilings. Then they heard a swooshing sound and discovered their floors splattered in water, and soaked insulation.

They filed a home insurance claim after the storm and an adjuster showed up. Chrissy said a month passed with no follow-up.

When she called, she said the individual she spoke with accused her of fraudulently damaging their home. The Spazianis said they did not damage their home, but rather made their best efforts to bolster in advance of the storm.

Chrissy and Stephen Spaziani haven't received the $200,000 that they need to repair their home.

They hired an attorney and are waiting for their dispute to resolve.

Insurance eventually paid around $65,000. But an independent adjuster put repair costs at around $200,000. The couple said the mortgage company is holding the money they have received in escrow until a contractor signs a repair contract. And they say no licensed contractor will agree to fix the damage at that price.

[wondermint2]

Thousands of Citizens policyholders may have to switch home insurance coverage

For full article:

https://www.wesh.com/amp/article/cit...orida/44589763

Ten of thousands of Citizens policyholders may no longer be eligible for coverage if a private company offers to take over their policies. It's what Citizens calls "depopulation."

Here's how the depopulation process works: Citizens will let you know that a private company wants to take over your policy. If that private company's premium is within 20% of your Citizens premium, you would no longer be eligible for Citizens. You don't necessarily have to go with that private company, but you'd no longer be able to get coverage through Citizens.

For example, if the premium for your Citizens policy is $3,000 and you get an offer from a private company for $3,600 or less, you wouldn't be able to keep your Citizens policy. That means some Citizens policyholders could end up spending more, or less, money on their new policies.

[wondermint2]

I came across this article on Bloomberg that I thought was an interesting take. It's behind a paywall but you can still get the gist of it.

Buffett’s Florida Bet Bodes Well for Troubled Insurance Market

https://www.bloomberg.com/opinion/ar...rket#xj4y7vzkg

Resurgent risk appetite from reinsurers suggests the acute phase of the state’s property crisis may be ending.

[Travelassie]

Originally Posted by wondermint2

I came across this article on Bloomberg that I thought was an interesting take. It's behind a paywall but you can still get the gist of it.

Buffett’s Florida Bet Bodes Well for Troubled Insurance Market

https://www.bloomberg.com/opinion/ar...rket#xj4y7vzkg

Resurgent risk appetite from reinsurers suggests the acute phase of the state’s property crisis may be ending.

We shall see. We just got our renewal notice from our insurer. The premium was increased ( no surprise there), but they also raised the coverage limits ( accounting for inflation) as well. We found this company did fairly well at reimbursement for our Ian damage claims, so we will most likely renew with them. We do have other options, our insurance agent sent us ( at our request) a list of five other insurers willing to provide homeowner's coverage, with premiums. We also have the option of insuring with USAA.

[wondermint2]

Florida insurance rates are the highest in the country

For full article:

https://www.msn.com/en-us/money/real...e0f0653d&ei=44

With ongoing inflation and above-normal prices in the housing market, Floridians continue to feel the squeeze on their wallets.

Adding in the ongoing insurance crisis in the Sunshine State, it might not surprise you that Florida has pricey premiums putting the state at No. 1 for the most expensive state for car and home insurance.

Two recent studies released by Insurify and FINN examine just how much money Floridians are forking over in order to have insurance coverage.

Just how much are people in Florida paying?

According to Insurify, on average Floridians are paying $7,788 every year just on home insurance coverage. That's nearly $1,000 more than what people are paying in the next-highest home insurance market — Oklahoma, where people pay an average of $6,853 each year.

Louisiana comes in at the No. 3 spot with people living there paying $5,353 each year on average.

"Home insurance rates are increasing for several reasons, including inflation, climate change, higher material costs, supply chain issues, and increased claims for fire and water damage," Insurify said in its report.

Insurify adds things such as your credit score, ZIP code and needed coverage level also affect how much you'll actually pay for your home insurance.

Florida also leads the United States in terms of paying for car insurance. On average, Florida drivers are shelling out $2,560 each year, according to data from FINN.

In comparison, the national annual average is $1,682.

The reason? Florida has the highest rate of uninsured drivers across the country. FINN says about 20 percent of drivers "lack even minimum liability insurance, pushing costs onto insured drivers through higher premiums."

Over the last 10 years, car insurance rates in Florida have increased about 88 percent, more than any other state in this time period.