The Florida homeowners insurance crisis continues, with little relief since the state legislative session in May. Over 400,000 homeowners have faced insurance issues, with many dropped or receiving non-renewal letters since January. The Insurance Information Institute reveals that an additional 27 insurance companies in Florida face downgrades by Demotech, deepening the crisis.
“It’s deteriorating literally by the day. Citizens’ growth is completely out of control. An insurer of last resort, a state-run insurer of last resort should never be the primary option for homeowners.”
Citizens Insurance, the state-backed insurer, has seen its clientele nearly double in two years, indicating an unsustainable model. Homeowners in Florida are paying nearly three times the national average in property insurance premiums, driven by factors such as roofing fraud, litigation, and rising home repair costs.
Key Take Aways:
Insurance companies, grappling with over $1 billion in underwriting losses, are particularly burdened by fraudulent roofing replacements. The state legislature has introduced measures allowing homeowners to undergo roof inspections to prevent non-renewal based solely on roof age. However, insurers are now scrutinizing the age of entire houses, complicating matters for those seeking coverage. The article suggests potential solutions, including the My Safe Florida Home Program and wind mitigation upgrades, to ease the financial strain on affected homeowners.