Why did homeowners insurance go up in Florida?
Essentially, Florida insurance companies must price policies so that they have enough money to cover claims expected from catastrophic losses such as hurricanes. Because Florida has the highest risk of catastrophe of any state, Florida homeowners insurance typically costs more than the national average.
Why has Florida home insurance gone up?
In 2019, the III estimated that excess litigation had collectively cost Floridians policyholders $1.6 billion. The number of lawsuits has risen even higher over the past two years. Insurance companies operating in Florida say they have been forced to raise rates to cover the costs of handling lawsuits.
Why did homeowners insurance go up in Florida 2022?
“Homeowner rates in the state of Florida are about triple the national average and they are still going up, mostly because of the fraud and litigation,” Hutt said. Fraud and litigation issues can be seen after storms according to Hutt.
Why are Florida insurance rates so high?
Florida's auto insurance rates are high for several reasons, including the state's no-fault auto insurance laws, risk exposure due to extreme weather conditions, average driver profile, and the number of uninsured drivers.
What is the average homeowners insurance in Florida?
The average cost of homeowners insurance in Florida is $2,122 a year, or about $177 a month, according to a NerdWallet rate analysis. And that number is on the rise. Florida home insurance rates have shot up in recent years due to frequent natural disasters and litigation expenses that insurers pass on to consumers.