Home Insurance Rates Are Skyrocketing. Here's Why.

Home Insurance Rates Are Skyrocketing in Florida. Here’s Why.

Despite legislative reforms passed during the 2021 Legislative Session, Florida’s homeowners have continued to see dramatic property insurance rate increases. At the same time, the insurance industry is losing billions to unnecessary lawsuits from third-party contractors. In the first three quarters of 2021, financial results show that property insurance had $1.22 billion in underwriting losses.1

So, what does this have to do with your property insurance rates going up? Everything.

Florida’s insurance marketplace has been plagued by unscrupulous cottage industries whose business model is capitalizing on consumers’ insurance policies. Bad actors in the construction, roofing, public adjusting, and legal industries have used abusive solicitation and marking tactics to manipulate the claims process for their benefit.

Only 8.15% of all U.S. homeowners claims were opened in Florida in 2019. Yet, Florida accounted for more than 76 percent of property claim lawsuits in the U.S.2

Between 2013 and 2020, Florida’s property insurers paid out fifteen billion in claims costs. Only eight percent of that was paid to consumers, while 71% was paid to attorneys.3

In 2020, Florida’s homeowners paid $651 more than people in nearby states like Georgia and Alabama. This year, that gap is projected to grow to $866.

The cost of bad actors and third parties filing false or inflated insurance claims is passed along to all of us.

Tasha Carter, Insurance Consumer Advocate

If you’re one of the thousands of homeowners in Florida who can’t afford property insurance rate increases, NOW is the time to tell your elected officials to ACT.

1. Guy carpenter Industry Financial Reporting
2. National Association of Insurance Commissioners (NAIC) Market Conduct Annual Survey (MCAS) Report
3. Florida's P&C Insurance Market: Spiraling Towards Collapse
Information provided by the Florida Association for Insurance Agents

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