Florida regulator approves almost 100 insurance coverage charge will increase
Many of the tariff proposals approved were double-digit increases – increases that several industry experts have warned about since last year.
Continue reading: Home insurance prices in Florida will rise significantly over the next year
“Florida’s insurance market is one of the most complex in the world,” Karen Roach, spokeswoman for the Office of Insurance Regulation, told News 6 WKMG in an email statement.
“The real estate market is facing major challenges as the frequency of claims increases and these claims for damages become more expensive.”
Roach also explained that these challenges are mainly due to factors such as increased litigation, higher losses in catastrophe claims after multiple hurricane events in recent years, and rising reinsurance costs.
But despite the rate hikes, Florida insurers are still losing money, said Paul Handerhan, president of the Federal Association of Insurance Reform (FAIR).
“The vast majority of insurers buying homeowners insurance in the state of Florida have posted underwriting losses over the past five years,” Handerhan said, adding that the state’s insurers “are definitely in dire financial straits right now.” ”
The FAIR President also noted that the “benefit allocation” practice has enabled contractors to file lawsuits against insurers for significant sums of money, which ultimately drives up premium costs for all consumers.
Continue reading: “We can’t insure you”
“All consumers – me, you and everyone else – pay for the activities of these roofers and other people walking around asking for advertisements,” Handerhan told News 6 WKMG.