The current state of Florida homeowners’ insurance services has been significantly underwhelming for years. Several insurance firms have declared bankruptcy, needed midterm cancellations, ceased writing new business, or are in liquidation.
For the most part, other companies continue to issue policies, but these policies are loaded with high deductibles or rate increases. At All Risk Insurance Group, we seek to enlighten, educate, and inform you of updates on the current state of homeowners insurance in Boca Raton and Delray Beach, South Florida.
There are several factors contributing to the demise of insurance companies in Florida. Some are common to other states and companies, but others are unique to Florida. These include the following.
A factor that is causing a problem for many policyholders is the sharp increases in rates that have taken place. The rates have been aggressive, with unprecedented jumps of about $1,500. Additionally, many insurance companies have refused to renew their clients’ policies, often forcing them to find new coverage at a much higher cost.
Due to its location, Florida has been exposed to several natural disasters, such as hurricanes and tornados. The catastrophic risk of these storms has caused many insurance companies to fail or cancel their policies.
It is important to secure a hurricane insurance policy, and we pride ourselves with providing it. With us, you will have a policy that will cover your home and belongings in the event of a natural disaster.
The current state of insurance in Florida is being threatened by insurance fraud, mainly driven by roofing claims that have been submitted. Florida leads the country in the number of claims per policy, with a high rate of 79%.
These actions are significantly affecting the ability of the insurance industry to continue to do business. These claims have also caused many insurance companies to raise premiums to cover the fraudulent actions and push even more people into being uninsured.
Legislation Put in Place
The Floridian government put in place measures to help mitigate this statewide trend of declining insurance companies. The governor of Florida, Ron DeSantis, signed a broad property insurance legislation that creates a $2 billion reinsurance fund and rewrites restrictions on coverage rejections and attorney costs. The bill also contains a provision requiring all complexes with more than three floors to undergo structural integrity evaluations statewide.
Securing a property insurance policy is essential as it is one of the most significant investments you will make during your lifetime. You need to know that you have a policy that will cover your home and belongings in the event of a natural disaster, especially in Boca Raton or Delray Beach, where hurricanes are more likely to occur. We are happy to help protect what matters most to you. Reach out to our offices today, and we will provide you with the best rate for your home insurance needs.