Florida Insurance – What You Can Do to Avoid Future Home Insurance Rate Increases
The recent Florida insurance property law passed by the Florida Legislature and signed by Gov. Charlie Crist is an important step towards improving the financial stability of the system for Florida. Lets run Florida, the state insurance company – Citizens Property Insurance Corporation to start raising its rates by up to 10% per year from 2010 as part of a multi-year process to move the company toward greater rates actuarially sound. Private insurance Florida home will also be able to obtain rate increases in the future, buying more reinsurance in the private market instead of Catastrophe Fund Florida.
The bright spot is that the Florida insurance system will be in a much stronger financial position in future years if the state can continue the limited hurricane activity which has enjoyed in recent years – something that has to happen to improve chance that most insurance companies in Florida home can fulfill its promise to pay your claim quickly and fairly hurricane.
The bad news is that all of us will face a 10% increase in insurance rates for Florida homeowners. An increase in the rate of 10% may not sound like much of an increase in other states but in Florida the situation is very different. These increases are based on higher premiums already in force after more rate increases after the hurricanes passed 2004/2005 of Florida. Even before the 10% increase, consumers in Florida and were paying the highest rates of home insurance in the country.
The rate increases could not come at a worse time. For one thing, Florida is in the midst of a financial crisis like the rest of the country with the depressed real estate, bankruptcies, foreclosures, and increases in unemployment. These rate increases are going to start happening at the same exact time that State Farm Florida will cancel up to 30,000 per month as policies start to leave the property insurance market in Florida. Our subscribers who currently have insurance with State Farm are telling us that to find comparable coverage with another insurance company home in Florida can cost up to 200% more after losing their coverage with State Farm.
So what is the bottom line for you as an insurance consumer of Florida homeowners as we move forward in this challenging period?
First you must understand that while there are only about 40 home insurance companies in Florida continues to write new business, if you shop around you has a good chance of finding companies willing to 5.10 finance your home – even if it is an old house or very near the coast.
It is very important for you to purchase your home insurance policy in Florida with more than an independent agent – someone who represents several homeowners insurance companies in Florida for your business. To connect with multiple independent agents will ensure that you are able to get quotes from all companies in your county who want to cover your home – not just home insurance companies in Florida carried by a single agent.
In addition, you have to do due diligence and research in all insurance companies homeowners in Florida that you are getting quotes from. The 40 companies are still willing to write new business vary considerably depending on their size, financial resources, experience in the insurance industry, and history of customer service. It is important to ask your agent how each of the companies that are considering is taking place in each of these areas.
As you come to a short list of companies, working with several independent insurance agents in Florida and make sure you have received contributions from all businesses in the county who are interested in covering their home. In evaluating the quotes, do not buy insurance for your home in Florida on price alone. Finding the right balance of financial stability, exceptional customer service, and the price of the policy. After all, pay a lower price for home insurance in Florida is not really a bargain if the company pays to choose slowly and will not pay the full amount you need to repair damage to his home after a hurricane in Florida?
There is no doubt that these recently approved an increase in home insurance in Florida will be very difficult to swallow and the time is very bad. However, if you take the time to find all home insurance companies in Florida who are interested in covering your home, you might be able to fight all the increase of 10% while the rest have to pay . Their research can save you thousands!