As expected, more severe hurricanes are pushing rates for homeowner’s insurance through the roof, but the storms aren’t the only factor. South Florida residents are fighting to keep their homes insured amidst an insurance industry crisis that’s been in progress since 2015 and is only worsening.
Increasing severity and frequency of hurricanes, inflation, increased cost of materials, and persistent supply chain issues are all combining to raise rates on homeowner’s insurance. Insurers also say the cost of litigation required to fight fraudulent claims due to assignment of benefit agreements and lawsuits by clients filed against them are responsible.
Many insurers have left the state, declined to renew policies, and are refusing to write any new policies. Others have been declared insolvent. Homeowners are seeing more exclusions, higher deductibles, and other requirements such as wind mitigation measures. Storms aren’t the only factors affecting insurance rates.
Forest fires are also taking a toll on rates. Some insurers won’t cover wind damage to roofs over 15 years old and others no longer write fire policies. Homeowners are seeing an average increase of 25 percent in their insurance rates, with the potential to see hikes of 40 percent or more, even though residents already pay the highest insurance rates in the U.S.
For flood-related devastation, homeowners are relying heavily on the National Flood Insurance Program administered by FEMA. For homeowner’s policies covering fire and similar damage, the rates will be much higher. Unfortunately, rate increases are pricing many residents out of the market, leaving them unprotected. Even homeowners that have never filed a claim are seeing increased rates, in some instances doubling.
People flock to South Florida for many reasons. However, as rates continue to spiral ever upward, some homeowners may find themselves with no other option but to leave the state and seek a home in a more rate-friendly state.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487