Exodus of Insurance Companies Leaves Florida Homeowners Facing Skyrocketing Premiums
Florida homeowners have been hit with a double-whammy in recent years, as a growing number of insurance companies have been leaving the state due to the high cost of providing coverage. This mass exodus of companies has had a significant impact on insurance premiums, as the remaining companies have had to take on a greater portion of the risk and have therefore had to adjust their rates accordingly.
The departure of home insurance companies from the Florida market has caused a crisis, with six insurers going insolvent this year and others leaving the state. The main cause of this is rampant litigation, costlier storms and rising reinsurance costs, as well as the "assignment of benefits" problem involving contractors after a storm, which is partly fraud and partly taking advantage of loopholes. In response to this, Florida lawmakers have passed an overhaul of property insurance legislation.
Some of the companies that have left the Florida market include:
Bankers Insurance Group
Lighthouse Property Insurance Corporation
FedNat Insurance Company
Avatar Property and Casualty Insurance Company
Lexington Insurance Company
St. Johns Insurance Company
Southern Fidelity Insurance Company
Weston Insurance Company
UPC Insurance Company
American Capital Assurance Corporation
Florida Specialty Insurance Company
Guarantee Security Life Insurance Company
Universal Insurance of North America
Gulfstream Property & Casualty
St. John's Insurance Company
As a result of these departures, homeowners in Florida are now facing skyrocketing premiums. According to a recent study, the average premium in Florida has increased by more than 50% in the past five years. This has put a significant strain on many Floridians, making it difficult for them to afford the coverage they need to protect their homes and families.
The good news is that Florida lawmakers are working on measures to help alleviate the problem. Recent legislation has been passed to address the root causes of the insurance crisis, such as the "assignment of benefits" problem and rampant litigation. These measures are expected to help stabilize the insurance market and bring down premiums over time.
In the meantime, homeowners in Florida are urged to contact their insurance agents to find out if they qualify for discounts or other incentives that can help offset the cost of their premiums.
