If you already own the home in Florida increasingly, homeowners are facing a shock of sticker shock when it comes to insurance costs.
Elizabeth Roach is a bit worried. For the past decade she paid $800 a year for insurance on her home. By 2020, she’s insurance premiums increased. At first, her premium increased to $1,000 , then to $1,500.
“This year, we received our financial statement, and it has been increased to $1,900 nearly three times than it was two years before,” she said.
The rate of $1,900 came from the state-owned Citizens Property Insurance Corporation. Other quotes she was offered could be as high as $6,000 per year.
“It is making us wonder whether there will be another rise next year? We’re not sure of what we can expect,” she said.
Experts within the Florida market say that insurance firms are failing. With less competition, more homeowners are looking to Citizens. State Senator. Jeff Brandes, R-St. Petersburg, said that the insurance market is out of control.
The rates for homeowners insurance in Florida are almost double that of that of the average national rate. The next day, Citizens Property Insurance will participate in an hearing to discuss an increase of 11% for policyholders. If it is approved, the increase will be effective in August.
“It’s similar to a snowball beginning at the top of the mountain, and then falling down a complete avalanche.” Lee Burke, with Burke, Bogart, and Brownell Insurance, said.
Burke stated that Citizens insurance has felt the economic strain.
“Citizens is no anymore an option for lots number of individuals,” the man said. “Citizens has been able to lose huge amounts of funds. Citizens has tightened its underwriting requirements. There are a lot of houses they will not insure.”