Living and working in Florida, you probably understand that there is some risk-reward with calling FLA home. While we can reap the benefits of warm weather, blue skies, and beautiful oceans we also have to contend with mother nature and paying a premium at times. One of those “premium” costs is in home insurance. Insurance premiums have been on the rise during the past few years. Why is this the case? There are a few key reasons.
Hurricanes Are Striking Florida with Greater Frequency
Florida is inexorably tied to hurricanes. Some of the most powerful hurricanes in history have made landfall in Florida since we stick out like a hitchhiking thumb. Thinking about Hurricane Andrew, Hurricane Michael, Hurricane Irma, and Hurricane Wilma makes you realize hurricanes strike Florida with great intensity and frequency. Because of this, homes are going to suffer severe damage and require more repairs. Therefore, home insurance premiums are going to rise as well. That is exactly what is happening in the wake of a historically active 2020 Atlantic hurricane season which went somewhat unnoticed due to the election cycle and COVID-19 dominating the news.
Some Companies Are Leaving the State or Going Out of Business
Another major reason why home insurance premiums are going up in Florida is that some other home insurance companies are leaving the state or going out of business. When home insurance companies go out of business, the other companies are left picking up the slack. As a result, home insurance premiums continue to rise. With fewer companies providing home insurance to residents of the state, the average home insurance price is going to increase.
A Greater Incidence of Fraud
Unfortunately, there have been several instances of home insurance fraud that have taken place during the past few years. Some home insurance companies have fallen victim to this, causing them to pay out more claims than they should. In order to cover the cost of these fraudulent claims, home insurance companies have been forced to raise the price of home insurance for everyone else. As long as home insurance fraud continues to remain a major issue in the State of Florida, home insurance premiums are going to increase.
Assignment of Benefits Problem in Florida
Finally, Florida also has an issue related to its assignment of benefits. This is an agreement that transfers the rights of an insured’s benefits to a third party. This is leading to issues related to runaway litigation, driving up the cost for home insurance companies. The result is that consumers are paying the price in the form of higher home insurance premiums. Unfortunately, there is not a way to avoid rising high home insurance premiums as the insurance companies control pricing, however, there is a way to control your costs.
Trust a Reputable Home Insurance Agency: First Beaches Insurance
If you want to make sure that you properly protect your Jacksonville home, then you need to make sure that you go with a reputable insurance agency that has partnered with financially stable insurance companies. That is where we can help you.
Even though home insurance premiums are rising in Florida, that doesn’t mean you have to sit idly by. Contact us today for a Fresh Look™ to see how we can protect your home at a reasonable price.