We are finally seeing some relief for the non-stop increases in Florida Home and Auto Insurance.
As policy renewals come in, we are seeing rates flatten and even go down a little for the first time in years.
Kudos to the Florida Legislature for creating meaningful reform to the fix the Litigation abuse we’ve seen over the past few years.
A combination of factors have contributed to Insurance rate relief for Florida residents.
- Florida Legislature’s new laws reigning in Litigation abuse.
- Inflation on wholesale prices of materials to repair homes and autos starting to lessen.
- New companies entering Florida adding more competition for home insurance.
Hats off to the Florida Legislature
The Florida Legislature finally passed meaningful reform to fix the massive Litigation abuse in Home and Auto insurance.
We have all read the news stories and heard the stats:
80 % of all insurance litigation in the US is initiated in Florida.
92% of all insurance settlements go to Attorneys – only 8% to property owners
Contractors, acting as front men for attorneys, advertising “free roofs” paid for by your insurance company.
Car windshields costing insurance 10 times the actual cost of the installation.
One way to tell how the new Legislation will help rates in the future:
Thousands of claims filed by these same attorneys the week before the new legislation took effect.
They were witnessing the end to this particular “Cash Cow”.
Companies are still working through these claims, but at least the bleeding is over.
Hopefully, companies can then get back to making profit and competing for your business.
Inflation is leveling off and helping Florida rates go down
This week I received a strange call from a client who received their renewal from Citizens.
They wanted to know why their Dwelling coverage was reduced on their renewal by a few thousand dollars.
I had gotten used to questions asking why a Company had increased the Dwelling coverage at renewal,
So this was a new one for me.
I called Citizens and asked why.
They told me that there had been a decrease in the cost of wholesale products like lumber and cement.
Since inflation had eased the prices, they were able to lower the Dwelling coverage on the policy.
Let’s hope all the other Carriers follow Citizens in this practice.
More Companies mean More Competition
Companies are taking a fresh look at the Florida market.
Conditions, (like the new legislation), have made them consider Florida as a state they can make profit.
The high prices of competitors has also contributed to this new feeling.
And although they may come in at prices similar to what others are charging,
At some point, companies will start to compete against each other for market share.
And that is good news for Florida homeowners who have been getting crushed by these high premiums.
Can Florida Insurance Rates Keep Going Down?
I believe they can.
With the new legislation ending the majority of the Litigation Abuse, companies can forecast lower claims payouts.
Once they work through the thousands of claims, they should be able to start operating profitably again.
If inflation continues to level off, it will cost less to repair damages in future claims.
And as more companies come into the Florida market, they will need to compete at lower rates to win new business.
When you have questions about insurance or need a quote, contact the independent agents at Cronin Insurance.
Low rates, choice of companies and personal advice from local agents.
Cronin Insurance is the Wise Choice.
