The Insurance Information Institute says that by 2023, property insurance prices in Florida will have gone up by at least 40%.
Mark Friedlander, who is in charge of communications for the institute, stated that these hikes are happening even though Floridian residents already pay more than those in other states.
He remarked, “Right now, Floridians may pay the highest average premium in the U.S.”
Friedlander claimed that the average homeowner in Florida pays $4,231 for property insurance, which is almost three times the national average of $1,544.
Rates have gone up all around the country because the expense of disasters is going up. Hurricane Ian caused around $60 billion in insured losses in Florida, and many insurance companies have left the state. This has led property insurance rates to go up.
In February, United Property & Casualty Insurance Co. in Tampa became the eighth private insurance company in Florida to go out of business. Friedlander claimed that out of the over 135,000 policies that UPC has, about 20,000 claims from Hurricane Ian are still open.
Citizens Property Insurance Corp., which is backed by the government, takes over policies when private insurers discontinue. In 2023, there will be a record number of 2 million policies.
“So, a lot of Florida homeowners are in a really bad spot right now,” he stated.
The expected rate hikes in Florida are also higher than the national average.
Friedlander said that residents in Florida should expect their property insurance rates to go up by more than 10% for the second year in a row. In 2022, rates went up 33%, which was more than the national increase of 9%.
Last year, Pinellas County had the highest rates in the broader Tampa Bay area, at about $3,000. These costs are likely to go up even more in 2023. Insurance premiums for homes in Hillsborough County are expected to rise from an average of $2,500 per year to $3,500 per year.
Homeowners who have insurance should expect to get renewal notices with any rate hikes 60 days before their policy starts.
With the possibility of more price hikes next year, many Florida homeowners feel like their finances are in danger.
How many people in Florida live from paycheck to paycheck? Friedlander asked. “They can’t pay for these huge price hikes every year.”
Friedlander noted that some Floridians can’t keep their houses if the cost of property insurance keeps going up at this rate.
Before the 2023 hurricane season starts on June 1, Friedlander advises Floridians not to cut back on or drop their insurance coverage. Even though it’s tempting to save money up front, he warns that not having enough insurance or none at all after a storm like Ian might leave homes in a tough spot.
“This happened to a lot of people whose homes were damaged by Hurricane Ian,” he said. “They cut their coverage because it was getting too expensive, and now they’re in a much worse financial situation than they were before the storm.”
Friedlander noted that modifications to the law established during the emergency special session in December could limit the rate rises.
A report from the Insurance Information Institute says, “The 2022 legislation will move the Florida property/casualty market toward stabilization, but policyholders’ premium rates won’t go down any time soon.”
He warned that it could take up to 18 months for consumers to feel the actual effects of the new rules.
Friedlander tells homeowners who want to minimize their premiums in the meantime to bundle their house and car insurance, raise their deductibles for a cheaper monthly rate, and ask about specials like loyalty or senior discounts.
