For those looking for any positive sign concerning property owners insurance rates in Florida, we found it.
The news is “cautiously optimistic” but when it comes to Florida’s soaring insurance rates for homeowners any good news is worth talking about.
According to the News Service of Florida and The Capitolist, there should be some rate adjustments on the horizon. And when we say adjustment we’re talking about rates going down.
Everyone who pays homeowners insurance — or who is considering buying a home — has their eye on insurance rates. In Florida the signs have not been good for some time. A big hurricane season in 2022 sent some carriers scurrying for greener pastures. Their desertion left too many people clinging to their only reasonable hope — Citizens Insurance.
All that did was force Citizens to raise its prices while at the same time doing everything it could to shed policies. Some of those policies were gobbled up by companies with less than stellar ratings.
There seems to be a crack in the gloomy skies that have prevailed over the insurance industry in Florida.
The Capitolist reports that AM Best, a national rating agency, reports improved profitability of insurers in Florida, a better market for reinsurance and a slight influx of new companies willing to take on policies (including thousands of Citizens clients), has somewhat stabilized the market.
The rating agency also gave some credit to the Legislature for recent reforms.
But, and there is always a “but” when it comes to Florida insurance, the real test will be this hurricane season. And, of course, everyone from the National Hurricane Center to Grandma Jones is predicting one of the busiest and possibly costliest hurricane seasons in a long, long time.
The News Service of Florida said “while still too early to declare a win in the Florida personal property market, the signals look promising,” according to the report. “The legislative reforms and declining Citizens’ policies in force mark a step in the right direction. Time will tell if favorable market results will continue and effectively managing hurricane risk is an ongoing challenge.”
Just about any homeowner can tell you the burden they are facing with increased costs for insurance. In three years, according to the Insurance Information Institute, policies have doubled on the average.
The good news coming out of that recent report, according to the News Service of Florida, is that the Florida Office of Insurance Regulation this month said at least eight carriers had filed for rate decreases in 2024, while 10 had filed to keep rates flat.
That’s encouraging news.
The real test will come with current policies that are up for renewal. How many of us will see a correction on the pricing? That will be the big test.
If the predictions hold true, and Florida is hit by two or more major hurricanes this season — pray not another Hurricane Ian — all this good news will be for naught.
Homeowners — including many who rolled the dice and said they were not carrying insurance on their paid-off homes this year — are captives of Mother Nature. Future insurance rates will depend on her whims and how much hurricane-proofing homeowners have done since Ian showed us how bad things can get.
— Charlotte County Sun