2 insurance companies seek premium hikes of more than 50% for Florida homeowners (2024)
Two insurance companies are hoping to get proposed premium hikes of more than 50% approved for Florida homeowners. Castle Key Indemnity Company, owned by Allstate, covers condo owners. The company has proposed its rate to jump by 53.5% for customers.A spokesperson for Allstate told WESH 2 the increase was filed with the Florida Office of Insurance Regulation in 2023 and that a majority of their customers have already experienced the increase.Amica Mutual Insurance, which covers properties like vacation homes, has proposed a 54.1% increase. The Florida Office of Insurance Regulation will hold hearings next week to decide if it'll approve the rate requests."The more storm losses we see, the higher premiums are going to go," said Mark Friedlander, who is the Florida spokesperson for Insurance Information Institute.Friedlander said severe weather events are driving up the costs. "And it's not just hurricanes," Friedlander said. "We've had several tornado outbreaks this year during the winter season. Rare."While other companies may also consider raising their rates, Friedlander said last year, many companies were seeking triple-digit jumps."We were seeing many above 100%. So that is at least a positive sign," Friedlander said. Homeowners should see some hopeful signs soon. "Seven new insurers companies have been approved to write homeowners' policies in Florida in 2024. And this is the first time in many years we've seen a large volume of new insurers want to come into the Florida market," Friedlander said. It could mean that people will soon have more choices. "More choice typically leads to better pricing," Friedlander said. In a statement sent to WESH 2, a spokesperson for Amica said in part: "Amica is requesting this rate increase on our dwelling policy line of business, which are policies that often cover secondary residences or rental properties. This rate change specifically does not apply to standard home policies. The rate increase is necessary to restore pricing adequacy for this product. Amica remains committed to providing excellent products and services to our customers at competitive rates."In a statement about Castle Key, a spokesperson for Allstate said in part: "The cost of providing reliable protection for Florida homeowners has risen dramatically, and we’re taking actions to ensure we can protect customers over the long haul. We’re committed to the state of Florida and confident recent insurance reforms will address longstanding challenges in the state."
Central Florida, FL, USA —
Two insurance companies are hoping to get proposed premium hikes of more than 50% approved for Florida homeowners.
Castle Key Indemnity Company, owned by Allstate, covers condo owners. The company has proposed its rate to jump by 53.5% for customers.
A spokesperson for Allstate told WESH 2 the increase was filed with the Florida Office of Insurance Regulation in 2023 and that a majority of their customers have already experienced the increase.
Amica Mutual Insurance, which covers properties like vacation homes, has proposed a 54.1% increase.
The Florida Office of Insurance Regulation will hold hearings next week to decide if it'll approve the rate requests.
"The more storm losses we see, the higher premiums are going to go," said Mark Friedlander, who is the Florida spokesperson for Insurance Information Institute.
Friedlander said severe weather events are driving up the costs.
"And it's not just hurricanes," Friedlander said. "We've had several tornado outbreaks this year during the winter season. Rare."
While other companies may also consider raising their rates, Friedlander said last year, many companies were seeking triple-digit jumps.
"We were seeing many above 100%. So that is at least a positive sign," Friedlander said.
Homeowners should see some hopeful signs soon.
"Seven new insurers companies have been approved to write homeowners' policies in Florida in 2024. And this is the first time in many years we've seen a large volume of new insurers want to come into the Florida market," Friedlander said.
It could mean that people will soon have more choices.
"More choice typically leads to better pricing," Friedlander said.
In a statement sent to WESH 2, a spokesperson for Amica said in part: "Amica is requesting this rate increase on our dwelling policy line of business, which are policies that often cover secondary residences or rental properties. This rate change specifically does not apply to standard home policies. The rate increase is necessary to restore pricing adequacy for this product. Amica remains committed to providing excellent products and services to our customers at competitive rates."
In a statement about Castle Key, a spokesperson for Allstate said in part: "The cost of providing reliable protection for Florida homeowners has risen dramatically, and we’re taking actions to ensure we can protect customers over the long haul. We’re committed to the state of Florida and confident recent insurance reforms will address longstanding challenges in the state."
Castle Key Indemnity Company and Amica Mutual Insurance hope to raise homeowners insurance rates in Florida by more than 50%. Castle Key, a subsidiary of Allstate, has proposed increasing rates for Florida condominiums by 53.5%, an Allstate spokesperson told Kiplinger
Kiplinger
Kiplinger (/ˈkɪplɪŋər/ KIP-ling-ər) is an American publisher of business forecasts and personal finance advice that is a subsidiary of Future plc.
Florida homeowners pay the most for home insurance, with an average annual rate of $10,996 in 2023. Insurify predicted costs will go up another 7% in 2024 to $11,759. Six of the 10 most expensive cities in the U.S. for homeowners insurance are in Florida.
Three primary factors are driving the insurance challenge. First, natural disasters are becoming more common and costly. Second, the price of reinsurance is skyrocketing. And finally, Florida's litigation-friendly environment compounds the issue by making it easy for customers to sue their insurers.
The Florida Office of Insurance Regulation has to decide whether to approve the rate increases. In the video above, Handerhan talks about whether the two companies are outliers or if it could become the norm.
The average cost of homeowners insurance in Florida is $2,625 per year, or about $219 per month. That's 37% more than the national average of $1,915. In most U.S. states, including Florida, many insurers use your credit-based insurance score to help set rates.
The average annual cost to insure a home in the United States is $1,602 in 2024. That's a 2% increase over the previous year, but an 18% increase from five years ago. We predict a continued increase in 2024.
WASHINGTON, D.C. (NewsNation) — Days after a major insurance provider announced it was pulling out of Florida due to environmental risks, State Farm Insurance announced Thursday it is recommitting itself to the residents of the state, NewsNation has learned.
Three major companies have voluntarily withdrawn from the state since last year: Farmers Insurance, Bankers Insurance and Lexington Insurance, a subsidiary of AIG. AAA is not renewing a “very small percentage of higher exposure homeowner's policies,” it told the Palm Beach Post.
USAA will continue to provide auto insurance, life insurance, banking, and investment products to its members in Florida, as long as the state permits it to do so.
The Governor proposed a temporary fix in his 2024-2025 state budget proposal. “Let's reduce the cost of homeowners insurance,” said DeSantis. His plan includes a one-year exemption on taxes, fees, and assessments for homeowners' insurance policies.
However, on May 26, 2022, SB 4-D took effect, which eliminated Florida's 25% Roof Replacement Rule. Now, so long as the rest of the roof is in compliance with the 2007 Florida Building Code, or any subsequent versions of that code, then a full roof replacement is not required.
If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.
Several factors are making homeowners insurance more expensive: The increase in the number and severity of hurricanes, floods, tornadoes and other harsh weather has led to a spike in claims in many parts of the country.
More people are moving to areas prone to certain risks, such as wildfires, hurricanes, or flooding. Insurance companies may increase premiums to account for the higher likelihood of claims in regions such as California, Texas, Oklahoma, and Georgia.
Will homeowners insurance go down in 2024? Unfortunately, home insurance rates will continue to soar in 2024, according to Insurify's analysis. Annual home premiums are expected to jump by an average of 6% nationally, from $2,377 to $2,522. The rate hikes are projected to reach as high as 23% in some states.
Florida Gov. Ron DeSantis' proposed 2024 budget includes a bit of relief for homeowners who have experienced double-digit rate increases in the past few years. The governor has proposed a one-year exemption on property insurance taxes, fees, and assessments for homeowners with property valued up to $750,000.
Inflation and increased claims are joining together to make Florida's homeowners face huge premium jumps. Two of the state's private insurance companies have just applied to increase premiums by over 50%. The carriers, Castle Key and Amica have asked regulators to approve rate rises of 53% and 54% on some policies.
The Governor proposed a temporary fix in his 2024-2025 state budget proposal. “Let's reduce the cost of homeowners insurance,” said DeSantis. His plan includes a one-year exemption on taxes, fees, and assessments for homeowners' insurance policies.
Introduction: My name is Arielle Torp, I am a comfortable, kind, zealous, lovely, jolly, colorful, adventurous person who loves writing and wants to share my knowledge and understanding with you.
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