Home insurance in Florida has nearly doubled in the last few years, according to National Public Radio.
According to Business Insurance Mag, Florida has had the most significant increase in the cost of premiums across the nation. Premiums in the Sunshine State have risen at least 35%. Home insurance can now cost as high as $6,000 per year while the national average is $1,700.
Bobby Bacon is the chairman of the board for Tallahassee-based Eddie Bacon Insurance Agency, and he says the rising cost of homeowner premiums is due to the hurricanes that Florida has dealt with in the past.
“There has been a number of carriers since hurricane Michael five years ago that have gone into receivership so there are fewer companies available with the right coverage and reinsurance has gone so the ones that remain are charging higher and higher rates,” Bacon said.
Due to the lack of options for homeowners insurance, homeowners must choose between the 20 remaining insurance companies.
Caroline Nieves is a homeowner in Tallahassee, and she says the rising insurance costs have taken a toll on her financially.
“The last few years have been the worst couple of years. It’s our understanding that this is due to Hurricane Michael, specifically also the hurricanes the last few years have caused a pretty big rise in homeowners’ insurance the last few years. I’ve seen it go up hundreds of dollars in the last few years,” Nieves said.
Lawmakers are looking to stabilize the market, but it is still expected that the costs are going to continue to rise.
State Sen. Geraldine Thompson told NPR, “We find now the litigation has gone down. It has dropped. But the premiums have not dropped.”
Nieves is hoping that Florida lawmakers can create some legislation that will make the market more accessible for homeowners.
“It’s a difficult market currently. I’m hopeful we’ll see some relief for homeowners. I hope they’ll enact some new legislation to help bring the cost down in the next couple of years I know with the storms it’s difficult I understand that as a consumer, but I certainly hope to see a decrease in the premiums as soon as possible,” she said.
Homeowners can look to save money on insurance by shopping around and comparing different prices until they find the cheapest price and raising their deductibles. A higher deductible will lower the premiums because the insurance companies are taking on less of a risk.
Insurance Information Institute projects that rates will continue to increase by 40% in Florida, and it’s projected that the costs of premiums will continue to rise before a decease is seen.