All of the REALTORS® in Florida closely watch what’s happening with the homeowner insurance updates in Florida. Most homeowners have been worried and stressed over what may happen regarding their current carrier and their annual policy. Unfortunately, many homeowners have been dealing with stressful issues. Historically, homeowners have been dealing with non-renewal notifications from their current coverages company. Another big issue is a significant increase to their annual policy cost.
When I am working with home buyers in Gainesville, I always recommend my clients consult local independent insurance agencies. The reason is that the local agencies know our Gainesville area. And the local insurance agencies are aware of which national carriers can serve our area best. A recent email notice from McGriff-Williams Insurance Agency has provided an update to where things are regarding homeowner insurance updates in Florida. Here’s a detailed summary of their latest notice.
Some “Not-So-Loved” Trends
- Increased premiums: The average annual homeowners premium has gone up to approx. $4,200, which is triple the national average.
- Decreased availability of insurers: Florida has lost some form of coverage from over 30 carriers over the last 3 years and the ones that are left may not be in the best financial health. The cost of reinsurance has skyrocketed and is difficult to obtain.
- Litigation is still lingering: Florida accounts for only 9% of the nation’s homeowners claims but 79% of homeowners insurance lawsuits. High claim risk + fraudulent lawsuits = two consecutive years of net underwriting losses over $1 billion (with a B!) for carriers.
Positive Steps this Year
- Reform? Governor DeSantis pushed several big issues through this year and now that we’re nearing a full year of renewals since it took effect. Actual implementation is on the horizon. These reform bills are intended to stabilize the market, increase competition, and strengthen consumer protection.
- Increased Regulation? Things like shortened statute of limitations, eliminating one-way attorney fees and fee multipliers, banning the Assignment of Benefits, etc will create a more mutually advantageous atmosphere for insurers and insureds to coexist.
- New carriers are coming to the sunshine state. With more options to choose from, the financial risk will be better spread out and state backed Citizens will avoid overload.
Thanks to the McGriff-Williams team for keeping us up to date on homeowner insurance updates in Florida.
Please know we are here to help you, and welcome the opportunity to be your trusted advisors for real estate in Gainesville FL !