Revealed – What’s Breaking the Florida Homeowners Insurance Market?

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It also noted that since 2016, Florida has been hit by two major hurricanes — Irma in 2017 and Michael in 2018 — with no direct hits in the last three hurricane seasons of 2019-2021. And yet, Florida accounts for 79% of all homeowners. According to Ron DeSantis government office data, insurance claims filed statewide and insurers operating in the state receive only 9% of all US homeowner insurance claims.

“Floridians pay the highest homeowners insurance premiums in the country and have little exposure to hurricanes,” said Sean Kevelighan, CEO of Triple-Eye. “Floridians are seeing homeowners insurance becoming expensive and scarce as the state has led to many lawsuits and many fraudulent roof replacement programs over the years. These two factors greatly contributed to the loss of net insurance business. Florida homeowners’ insurers incurred cumulative costs between 2016 and 2021.

Using data from the Florida Office of Insurance Regulation (OIR), 3D Supra reported that $51 billion was paid out by Florida’s insurers over a 10-year period. Of the $51 billion, 71% went to legal fees and public experts. The cumulative net underwriting losses for 2020 and 2021 for insurers operating in the state totaled more than $1 billion each year.

Kevelighan commented, “State homeowners’ insurers have been forced to respond to these unfortunate market trends this year by restricting new business, not renewing existing policies, and even refusing to renew that policies have been canceled in the medium term.” Four homeowners insurance companies have filed for bankruptcy since February — while more Americans are moving to Florida than any other state.”

Continue reading: Another Florida insurer on the brink of bankruptcy

Triple-I also drew attention to Civil Property Insurance Corporation, the state-backed insurer of last resort, whose policy count grew by nearly 900,000 nationwide this month.

Continue reading: State-subsidized property insurance affected by lawsuits

The institute also found that third-party rating agencies have downgraded the financial ratings of some Florida insurance companies, adding even more pressure to the affordability and availability of homeowners insurance in the state.

Continue reading: Insurer sentenced to liquidation

Triple-Eye said a typical Florida homeowner’s policyholder paid $2,505 for coverage in 2020. However, that amount has risen to $3,181 in 2021, based on estimates by the OIR, the National Association of Insurance Commissioners (NAIC), and Triple-I, which insurers pay for home replacement costs.

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