Dwelling insurance coverage charges in Florida to considerably improve subsequent 12 months
Continue reading: Home buyers flock to Florida; But the insurance tariffs cast a cloud
Michael Carlson, Florida CEO of the Personal Insurance Federation, believes the rate increases are a symptom of worsening problems in the state insurance industry.
“I fear that people on fixed incomes and those with limited resources simply cannot afford these increases and will be evicted from their homes,” Carlson told WJXT Channel 4.
Carlson said the increases in insurance tariffs are a reaction to the rise in reinsurance costs for insurers – but that’s not the only factor. The other major contributor to the surge is the surge in fraudulent Florida repairs offered by unscrupulous contractors.
″ Sometimes roofs are replaced without damage. Sometimes roofs are damaged by unscrupulous contractors trying to make a claim. And sometimes roofs aren’t even repaired by a contractor who hired the homeowner to do repairs, ”he said.
Although there are only a small group of fraudulent contractors in Florida, Carlson found that they still have a significant impact on the state’s insurance tariffs. If they get into a dispute with an insurer, those contractors could bring a lawsuit to force insurers to deal with paying legal fees – additional costs that are ultimately paid for by consumers in the form of increased insurance rates.
“It’s really unfortunate that payers are paying, and worse, people are not being renewed, and in parts of the state, especially along I-4, there are zip code areas where insurance companies are refusing to start new business on the Write property area because the cost of claims and related litigation in these parts of the state is so dramatic that insurers don’t believe they can actually do business in those areas, ”Carlson said.