Florida homeowners are still receiving the shock of having to pay the cost of their insurance for property in 2022.
The annual cost for maintaining a property insurance policy in the state is more than double what it costs in the nation.
Lori Lanni of Royal Palm Beach is experiencing this alarming trend in the present and is watching her premium rise from $1700 a year to $3,400.
“They’re passing it on to the customer. You know, we’ve never made a claim,” Lanni declared. “We’ve never done anything to deserve what’s happening, so we’re upset about that.”
She spends hours every week trying to find a cheaper cost by contacting insurance companies.
“I haven’t called all of them, but I’ve probably called at least half,” stated Lanni.
She’s not the only one.
Insurance Information Institute reports statewide rates are up by 25 percent in the past year.
Experts believe there’s an array of problems.
- Why are rates for home insurance quickly rising in Florida?
- A Florida-based insurance company for homes is under the state’s supervision
- The rising cost of home insurance is causing particular Florida residents to relocate
- Increasing prices for home insurance dumbfound south Florida residents
“Rampant roofing fraud, runaway litigation, and rising replacement costs of homes,” stated Insurance Information Institute spokesman Mark Friedlander.
A roof repair might be hindering Lanni’s prospects of earning more.
A couple of years back, a business came to Lanni on the Royal Palm Beach home with an offer to repair her roof. Then she completed an assignment for benefits.
This letter granted the authority for the roofer to assume control of the whole claim and pass it to the insurance firm of her client.
This kind of scenario may cause some roofing companies to overestimate the cost of repair and then take it to court against insurance companies and negotiate a fair price.
Legal fees charged by insurance companies are passed onto customers in the form of the rising cost of insurance.
In the Insurance Information Institute report, Florida’s insurance companies suffered $1.6 billion in underwriting losses in 2021.
There’s more to it than roofing fraud that will increase prices in 2022
The disruptions in the supply chain cause a shortage of building materials such as lumber.
It costs the insurance company more for the reconstruction of homes following the filing of a claim.
Lawmakers are looking for an answer by introducing bills that would allow for the creation of more homeowners with companies to pick from.
Friedlander paints a bleak image if you’re seeking the end of this high-quality taste.
“We will continue to see rising insurance costs for at least the next year or two, regardless of what happens with the Legislature. It will not be an immediate fix,” Friedlander added. Friedlander.
He suggests adopting proactive measures to cut the cost of your insurance.
This can include the wind mitigation features to your home, bundling insurance for your car and home, and raising the deductible on your insurance.