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Premium Hikes May Be on the Way for Florida Property Owners

Homeowners across the state of Florida pay some of the highest insurance premiums in the country and according to a recent Sun-Sentinel article, the prices will soon get worse. Premiums are expected to see a considerable uptick as insurance companies try to grapple with the cost of providing coverage needed following the devastating effects of a major weather event, such as a hurricane.

“Reinsurance” is the term used to describe the practice where insurance companies have to purchase their own insurance to ensure they do not run out of money and policyholders receive payment when a disaster happens. Reinsurance rates in Florida this year rose 20 percent to 30 percent and averaged 26.1 percent for businesses serving the most vulnerable disaster areas in the United States. The increases are among the highest in Florida in over ten years and are not too dissimilar from the insurance premium hikes seen during hurricane season in 2005.

Industry experts believe the rises will soon begin to affect property owners in Florida who already shell out an average of $3,600+ each year to protect their homes. That’s almost $1,338 higher than the national average.

To read more, please visit https://www.sun-sentinel.com/business/fl-bz-hurricane-season-reinsurance-rates-increase-most-since-2002-20200612-4mqmkuqa3rhqjlllqcsicdqdoi-story.html.

This information is provided by Miami insurance lawyer Alonso & Perez, LLP. Our areas of practice include insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you. Para mas información sobre reclamo de seguro, por favor llamenos.

This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.