12 Aug Home insurance crisis in Florida
We are in the middle of hurricane season, with the 5th insurance company going insolvent this year. Western insurance has been put in receivership, dropping 22,000 policies. In addition, this year, Southern Fidelity went insolvent June 2022, Lighthouse Property & Casualty Insurance Corp April 2022, Avatar Property & Casualty Insurance March 2022 and Saint John Insurance Company February 2022.
Although these carriers participate in the Florida guaranty fund, claim need to be reported by their due date, or there be no coverage under the fund. www.myfloridacfo.com/division/receiver/.
The main reason with this turmoil, is the increase in the cost of the reinsurance to the carrier due to the amount of homeowner’s claims. In 2021, there were over 116,000 roof claims reported in FL alone on home insurance policies in FL, with the average number of roof claims in other states been 900. Florida is around 10% of the homeowner’s market but accounted for80% of the claims.
We are feeling this crisis, insurance rates are 40% to 100% higher on renewals, many are getting non-renewal notices and finding that the alternative is close to double of what they paid last year.
My advice is to read your policy, there are going to be several changes form the expiring term. Items to look at: (there are other points to look for, just pointing out a few)
• Inflation – the cost of construction is higher this year, did your homeowners reflect the higher cost to rebuild your home?
• Is your roof old? You may have replacement cost value on your home, but your replacement roof maybe be valued at actual cash value if it is an older roof, there should be a schedule of how carrier is going to pay the actual cash value on your roof.
• Assignment of benefits – may not be permitted on your new policy
• Attorney fees may be limits too
Please reach out to us to review together your insurance and see if we can help find solution that better fits your needs.
Marker Insurance 954-456-7605
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