The trend of paying for protecting your home is expected to continue in 2023.
According to the Insurance Information Institutespending in Florida is expected to rise an average of 40% this year, although lawmakers in Tallahassee approved major changes in a special session four illegal last month.
“The situation is so bad in Florida and the market has been in turmoil for years, it can’t be changed overnight with the flip of a switch,” said Mark Friedlander, a spokesman for the Institute. . “It takes time.”
The January 2023 Property Insurance Stability Report released by Florida’s Office of Insurance Regulation shows that homeowners in Monroe, Broward and Miami-Dade counties are paying the highest rates in the state, and some are its buildings are undergoing significant additions. You can read the report here.
A Broward homeowner recently told NBC 6 that his premium jumped to $5,000 in December 2022 renovations. He said his current bill is $4,951. per year and the renewal he was offered last month was $10,136 – more than double what he paid.
Friedlander said it is not unusual to see these types of financial increases.
“When an insurance company files a rate change with the Florida insurance regulator, it’s for a statewide rate increase,” Friedlander said. “But that’s just a start… areas with higher risk will be paid above average and areas in the state with lower risk will be paid below average. “
Friedlander said the most immediate impact from the new laws passed by homeowners this year is that their insurance company will remain in business in the state.
“That’s probably number one because there are still a lot of Florida insurance companies that are in financial trouble,” he said.
He said that 19 companies remain on the state’s watch list, mainly because of past expenses.
“It is very concerning that we can see the high number of new lawsuits directly related to Hurricanes Ian and Nicole that may push these companies into more trouble,” he added.
NBC 6 reached out to state officials to ask about the increase in our Broward viewership that experienced the renewal. A spokesperson said they are looking into it and will let us know what they find.
Meanwhile, the viewer told NBC 6 that it looks like he will end up with Citizens, the state’s insurance company. According to Friedlander, Citizens should reach the maximum number of policy holders sometime this year.