Florida's specific property insurance legislation, the state's susceptibility to hurricanes, and the rising rate of insurance fraud have contributed to this. He also said that Florida has a higher percentage of uninsured drivers. ICA Carter's advice was similar and advised that “consumers should contact their insurance agency immediately to determine what their insurance options are for homeowners. The provisions included the creation of the My Safe Florida Home Program, which provides grants to help Florida homeowners strengthen their homes against damage.
That said, insurers will have to decide if they are comfortable with these restrictions or if they will continue to leave Florida. Where you live in Florida can have an impact on the overall insurance market when considered in conjunction with how the homeowner has purchased their home. Florida has always represented a risky market for home insurance companies due to the great threat of widespread climate-related damage, but the current crisis is due to a number of factors that are reaching their boiling point at the same time. It remains to be seen if finding another rating agency will generate significant results in correcting the home insurance crisis in Florida.
Stopping AOB fraud is the best way to help prevent insurance rates in Florida from continuing to rise. Florida also ranked third in terms of premiums paid for property and accident insurance, according to the National Association of Insurance Commissioners. While rising reinsurance costs are the main driver of rising home insurance rates in Florida, litigation costs are another problem that Florida insurance companies face when setting the price of home insurance. A report on the stability of property insurance published by the Insurance Information Institute supported Rollins' requests to increase rates in August, and the report said that “in states prone to hurricanes, renewals in the middle of the year showed increases of 5 to 15% in accounts exposed to disasters and affected by losses, but that “in Florida, increases reached 50%.” This is the state-sanctioned organization dedicated to protecting insurance consumers in the event that an insurer cannot meet its obligations.
In addition, Friedlander warns that, since Citizens insures many of the high-risk homes that other companies have moved away from, “a major hurricane that hits Florida could have devastating effects on the company and the industry. Essentially insurance for an insurance company, reinsurance is a necessary part of an insurer's ability to pay claims, especially in states prone to disasters, such as Florida. While the company called for a 10.7 percent increase in standard home insurance policies, the Florida OIR approved a 6.4 percent increase.