Homeowners to face huge premium jump as insurers seek 50% premium hike

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Homeowners to face huge premium jump as insurers seek 50% premium hike


Homeowners face huge premium hike as insurers seek 50% premium increase | Insurance business America

“I think that’s pretty consistent with what you’re going to see overall,” the expert says

Property

By Matthew Sellers

Inflation and rising claims combine to leave Florida homeowners facing huge jumps in premiums. Two private insurance companies in the state just filed to increase their premiums by more than 50%.

Castle Key and Amica carriers have asked regulators to approve rate increases of 53% and 54% on some policies.

The increases are caused by a number of factors, including extreme weather events.

“These aren’t just hurricanes,” said Paul Handerhan, president and CEO of the Federal Association for Insurance Reform, on Bay9 TV. “These are severe convective storms that we are experiencing, like tornadoes and hailstorms.”

“These are becoming more common and are being incorporated into the rate base for consumers,” he continued.

Although a number of insurance carriers have pulled out of the Florida market, Handerhan still believes private insurers will continue to offer coverage in the future.

“We live in a beautiful state, we have beautiful weather at times, but it’s certainly not the cheapest place to live in our country,” Handerhan said.

Following the passage of litigation reforms and the end of the 2023 storm season, a number of insurers have recently entered the “Sunshine State,” and the state’s insurer of last resort has been happy to shift its customers to the private sector.

The trend toward premium increases shouldn’t come as a surprise to homeowners — last year, Florida topped a Policygenius list of the biggest home insurance increases.

  • Florida: 68% ($1,127 to $1,896)
  • New Mexico: 47% ($855 to $1,255)
  • Colorado: 46% ($1,390 to $2,031)
  • Idaho: 46% ($552 to $804)
  • Texas: 46% ($1,471 to $2,141)

According to the Insurance Information Institute, the average homeowners insurance premium in Florida is already $6,000.

Do you have an overview of premium increases for homeowners? Leave a comment below.

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2024-02-12 20:28:07

www.insurancebusinessmag.com