State of The Florida Personal Insurance Market: 2022

In Florida, the Personal Insurance market will offer plenty of challenges in 2022.

Assignment of Benefits scams, Limitations on Coverage, and Advances in Digital Technology will all affect Floridians this year.

Home Insurance

In a word – it’s a MESS.

Just trying to keep your home insured will certainly be high on your Personal Insurance list in 2022.

Companies will continue to cancel policies, refuse to write new business, and reduce coverage for existing customers.

Those that offer renewals to their customers will increase premiums from 10 to 50%.

Here in South Florida, companies are still working through Claims from Hurricane Irma.

They are also dealing with attorneys and contractors gaming the system.

Home Insurance Companies are losing alot of money in Florida

Among the insurers who still write business here, in 2020 — even without a hurricane making landfall — Florida’s property insurance market posted one of its worst financial performances to date: 56 Florida insurers reported a combined $1.57 billion in underwriting losses, according to data obtained by the Tampa Bay Times.

Tampa Bay Times.

Here’s another shocker:

Also, consider this statistic: Since 2013, $15 billion has been paid out in claims in Florida — 71% of which went to attorney fees, 21% paid for insurers’ defense costs and just 8% went to property owners or their losses.

National Association of Insurance Commissioners’ Market Conduct Annual Summary

In 2019, Florida only represented 8.16 percent of property insurance claims filed nationally; however, Florida represented over 76.45 percent of litigated property insurance claims nationally.

Could that be possible?

Watch For Endorsements at Renewal time

If and when you get your Home insurance renewal this year, it’s important to check if any endorsements are included.

These endorsements are a direct result of the Assignment of Benefits scams perpetrated by unethical attorneys and contractors.

Here’s what to look for:

Water Damage limitations

Many companies will limit Water Damage coverage to $10,000. Some will let you buy more, other will not.

Most companies will have limits on what they will pay unless you contact them first – before you start the work.

So keep your insurance company’s claim number handy or you can go here to find it.

Roof Coverage Changes

There are hundreds of homeowners who do not maintain their rooves.

They feel they will wait for a bad storm and claim the damage was a result of the storm. That’s bad enough.

Now, contractors and their attorneys solicit homeowners by telling them, “I can get you a new roof and your insurance will pay.”

As a result, insurance companies are suffering the losses we mentioned above.

Of course, they will just pass these losses onto the rest of us in higher premiums.

Companies have decided a good way to stop this is to limit the coverage they will provide.

Up until now, companies wrote Replacement Cost on Rooves.

Many want to write Actual Cash Value (ACV) now.

With ACV, they can depreciate the cost of replacing the roof based on how old it is.

So a home with a 10 year old roof that costs $20,000 to replace, might only receive $7500 to repair it.

New Time limit on Hurricane Claims

BTW, you now have only two years instead of three to place a claim for damage for a hurricane.

Thank you, contractors and attorneys. You know who you are.

So make sure you read your policy when you get your home insurance renewal.

Buyer beware!

Car Insurance

According to Yahoo Finance, Car Insurance will increase approximately 5% in 2022 with the average cost of $1707 annually per car.

Of course, Florida usually leads the way.

Women, on average, pay 9% less for their car insurance than men — and 14% less than non-binary policyholders.

Unmarried homeowners spend the least on their auto insurance, paying an average of 8% less than married renters and 18% less than unmarried renters.

Car Insurance companies will increase their use of digital technology in processing business and adjusting claims.

Downloaded apps will continue to be emphasized so consumers have easy access to id cards and billing.

Companies will expand the use of digital photos for underwriting – upload a photo and the companies can see dents and dings before insuring a car.

Many companies are also using digital photos to help process simpler claims like glass claims or small fender benders.

Beware! Many companies are also testing blockchain technology to verify the genuineness of photos and documents.

Personal Health Insurance

Here’s some good news: More people than ever are obtaining coverage for Health Insurance.

Despite some remnants of political interference, more people are signing up through the Affordable Care Act (ACA).

13.6 million applied by December 15 and that doesn’t count an extra month to apply with January 15, the extended deadline.

Many are taking advantage of the increased tax credits initiated by the Biden administration in 2021.

For example, a 30-year-old with $35,000 in income would pay, on average, $142 a month for a silver plan — instead of $389 monthly — after a premium tax credit of $247, according to the Kaiser Family Foundation’s online estimating tool. 

A married couple, both age 50, with one child under age 18 and income of $65,000 would get $1,169 monthly, on average, to bring the cost of a silver plan down to $316 from $1,485.

More people insured should result in fewer unpaid hospital bills that are passed on to the rest of us through increased premiums.

In conclusion:

There will be big changes in Florida Personal Insurance for 2022, some good; some not so good.

If you need help, or if you have any questions about insurance, do not hesitate to contact Cronin Insurance.

We are here to help.

Low rates, Choice of Companies, and Personal Advice from Local Agents.

Cronin Insurance is the Wise Choice.


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