You will either move home insurance providers or sell your home, that's what many home owners in Florida are facing right now. With many policies increasing over 40% some cases even over 50% in yearly costs.
John Rollins, a former chief risk officer for Citizens Property Insurance as well as a former chief financial officer and chief risk officer for many Florida property insurers, discussed the state's ongoing property insurance problems with WFLA.com. From 2011 to 2013, he sat on the Citizens board after being appointed by the then-gov. Rick Scott.
In an interview with WFLA.com, Rollins claimed that policy premiums for Floridians have increased by 50% over the last four years, and that this trend is continuing. According to him, the sector and a number of state authorities anticipate a reinsurance cost increase of at least 40% in June.
Although intricate, he claimed that the problems Florida residents face can be boiled down to how insurance policies are invoiced and what's causing the rising costs. In the short term, it's unclear exactly what can be done to repair the property insurance situation, as has been previously reported, and finding a solution is difficult.
If an insurance company intends to increase rates by more than 15% in a year, they must notify the state's Office of Insurance Regulation. According to hearing notices posted on the agency's website, six private insurers requested rate increases from the state last year, including Southern Fidelity, which requested an increase of 84.5% before being compelled by the state into liquidation.
The expected costs of replacement materials or rises in the cost of reinsurance and the insurance that protects the companies in catastrophes, are two more policy variables that corporations can raise rates without receiving approval for.
Last year, the Legislature had two special sessions focused on insurance, leading to new regulations aimed at halting a flow of property claim lawsuits industry officials allege are bankrupting companies. In a letter to the Legislature in 2021, OIR commissioner David Altmaier stated that although Florida accounts for 8% of claims nationwide, the state had 76% of claims lawsuits.
Floridians are also being impacted by a different kind of policy concentration. Several companies offering property insurance have withdrawn from the Florida market or gone into receivership, in which case the OIR assumes responsibility and moves or supports policies and claims to ensure that coverage is maintained. The intention is for the residents to pay the bills, and as a result, surcharges have already been introduced to monthly premiums.