Homeowners in Florida can expect a significant increase in insurance premiums in 2023, with projected average rates set to rise by a staggering 76%. This news comes as the state's insurance regulators approve an emergency assessment on almost all Florida insurance policies to pay for the most recent carrier insolvency. Moreover, there are signs that bad actors who helped ruin Florida's property insurance market are migrating to Louisiana and Texas, as Louisiana Insurance Commissioner Jim Donelon warns.
The increase in Florida's homeowners insurance premiums is due to several factors, including inflation, catastrophic events such as hurricanes, wildfires, and floods, rampant fraud, and excessive litigation. According to Insurify, Floridians will pay an average of nearly $8,000 in homeowners insurance premiums in 2023, making Florida the state with the highest predicted average annual premiums. Hallandale Beach is the most expensive city for homeowners insurance, with an average annual rate of $12,578.
To address the financial fallout from the recent United Property & Casualty insolvency, the Florida Office of Insurance Regulation has ordered a 1% emergency assessment on all property insurance policies, excluding automobile. The assessment will be a pass-through to policyholders and will begin on October 1, 2023, continuing for a year, with automatic renewals afterward until the bonds are paid off, expected in 2025.
Louisiana Insurance Commissioner Jim Donelon is warning his state's legislature that bad actors who caused Florida's property insurance market's ruin are migrating to Louisiana and Texas. He advocates that Louisiana follow Florida's example and pass comprehensive insurance marketplace reforms to prevent unscrupulous contractors and law firms from filing lawsuits on behalf of homeowners.
As a homeowner in Florida, it's crucial to review your current policy and determine if you can make any changes to save money. At Barbee Jackson Insurance, we understand the importance of protecting your home and assets while also keeping costs in mind. Our team of experts can guide you through the process and help you find the right policy for your needs and budget. With insurance rates projected to rise, it's important to take proactive steps to protect yourself and your assets.
As a result of the increasing rates, homeowners in Florida may be considering their options for insurance coverage. One option to consider is Citizens Property Insurance, which is a state-run insurer created to provide insurance coverage to homeowners who cannot obtain coverage elsewhere.
Citizens Property Insurance offers coverage for damage to homes and personal belongings, as well as liability coverage. Although rates may still increase, Citizens Property Insurance may offer lower rates compared to other private insurance companies. Additionally, the state-run insurer is required to follow certain regulations and provide coverage to all eligible applicants, regardless of their location or previous claims.
However, it's essential to keep in mind that Citizens Property Insurance may not provide the same level of coverage as other private insurance companies, and policyholders may face longer wait times for claims processing. It's important to carefully review the coverage options and limitations before making a decision.
At Barbee Jackson Insurance, we understand that choosing the right insurance coverage can be a challenging decision. Our team of experts can help you navigate the different options and find the best policy for your needs and budget. Contact us today to learn more about our services and how we can help you protect your home and assets.