Florida homeowners continue to grapple with an insurance crisis, with rising premiums and limited options.
According to the Insurance Information Institute, the average insurance premium for homeowners in Florida has spiked by 42% year-over-year, to an average of $6,000 in 2023.
At least a dozen insurance companies have stopped issuing new policies in Florida since January 2022 and three companies have announced their intentions to withdraw from the state in the past year, according to the Institute.
In an attempt to stabilize the market, state lawmakers recently passed a series of reforms, some of which are already in effect.
Last week, Florida regulators ordered Citizens Property Insurance, the state-backed insurer, to reconsider a proposed 12% rate hike for some homeowners.
Officials from Citizens say this is necessary after dealing with a massive growth in recent years with over 1.3 million polices.
Regulators have ordered the state-backed Citizens Property Insurance Corp. to revamp proposed rate increases. NBC6 explains what that means for your home insurance.
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Citizens has 30 days to submit a revised rate proposal. A spokesperson with Citizens said they're "reviewing the order and will submit a revised set of recommendations."
Dulce Suarez-Resnick, Vice President of Sales at Acentria Insurance, weighed in on the situation.
"There is an availability and an affordability issue," Suarez-Resnick said. "We do not have enough companies writing right now."
She attributes Florida's fluctuating insurance rates to several factors including insurance fraud and major storms in recent years.
Despite this, Suarez-Resnick sees a silver lining.
"The good news is that there are at least three or four companies that have applied to do business in the state of Florida next year," she said.
Earlier this week, the Florida Office of Insurance Regulation (OIR) approved two Indiana-based property and casualty insurance companies to write policies in Florida.
According to a news release from OIR, a total of four companies have been approved after lawmakers passed a series of insurance reforms.
Suarez-Resnick encourages homeowners to take these proactive steps:
- First, call your insurance agent to talk about your policy.
- Ask if you're missing out on any discounts or credits.
- Check if you can make any changes to lower your insurance cost right now.
- Review your current policy to see if you have extra coverages you no longer need.
Further changes are coming for Citizens' policyholders. Starting November 1st, homes that are not considered primary residences could face up to a 50% rate increase.
Homeowners are required to provide documentation to prove their property is a primary residence, or else the higher rate will be applied upon renewal.
This could have a ripple effect, potentially resulting in higher rental prices as landlords pass on the increased costs to tenants.
FAQs
Several new insurers have entered the Florida property insurance market in the past two years. The most recent is Sypher. Other new entrants include Slide Insurance, Orange Insurance Exchange, Condo Owners Reciprocal Exchange, Tailrow Insurance, Mainsail Insurance Solutions and Trusted Resource Underwriters Exchange.
What are the 8 new insurance companies coming to Florida? ›
Here are those new insurers:
- Ovation Home Insurance Exchange.
- Manatee Insurance Exchange.
- Condo Owners Reciprocal Exchange.
- Orange Insurance Exchange.
- Orion180 Select Insurance Company.
- Orion180 Insurance Company.
- Mainsail Insurance Company.
- Tailrow Insurance Companies.
As of last week, Citizens had nearly 1.19 million policies. State officials this spring have touted improvements in the market. As an example, the Florida Office of Insurance Regulation this month said at least eight carriers had filed for rate decreases in 2024, while 10 had filed to keep rates flat.
What new property insurance company approved to enter Florida's troubled market? ›
The newly-approved property and casualty insurers include:
Manatee Insurance Exchange. Condo Owners Reciprocal Exchange. Orange Insurance Exchange. Orion180 Select Insurance Company.
What are the new insurance companies writing policies in Florida? ›
The eight new companies include Ovation Home Insurance Exchange, Manatee Insurance Exchange, Condo Owners Reciprocal Exchange, Orange Insurance Exchange, Orion180 Select Insurance Company, Orion180 Insurance Company, Mainsail Insurance Company and Tailrow Insurance Companies.
What insurance company is pulling out of Florida? ›
Some insurance companies that have pulled out of Florida or taken steps to reduce their exposure include AAA, Farmers Insurance, Bankers Insurance and Lexington Insurance. Many others have scaled back their operations in Florida.
How many insurance companies went out of business in Florida? ›
The crisis in the Florida insurance market
Florida has always been a complex home insurance market. Since 2017, eleven property and casualty companies that offered homeowners insurance in Florida liquidated. Five of those companies liquidated in 2022, and United Property & Casualty Insurance Company liquidated in 2023.
Does Florida have an insurance crisis? ›
Florida's homeowners insurance crisis has become a nightmare for many homeowners, driving them out of the state. Home insurance premiums continue to increase, with limited competition in the market. Despite promises of reform, no significant change has been made.
Why is State Farm leaving Florida? ›
Last month, Farmers announced it would not write new property policies in Florida due to rising catastrophe costs, while State Farm, California's largest homeowners insurer, announced in May that it would halt new policies in the state due to catastrophe exposure.
What states are insurance companies pulling out of? ›
As well as leaving America's most populous state, American National has plans to cease offering homeowners' insurance in an additional eight states, including Arkansas, Colorado, Louisiana, Minnesota, Oklahoma, South Carolina, South Dakota, and Washington.
The companies, Ovation, Manatee, Condo Owners Reciprocal, Orange, Orion180 Select, Orion180, Mainsail and Tailrow are currently involved in take-out offers for Citizens policies. The Florida Office of Insurance Regulation announced this week that these eight insurers have been approved to do business in the state.
Who is the largest homeowners insurance company in Florida? ›
Universal Property and Casualty Insurance Company
Our picks for the top home insurance companies in Florida are State Farm, Allstate and Chubb. The average homeowners insurance cost in Florida is $2,490 per year.
What is the new insurance law in Florida in 2024? ›
Effective Date: July 1, 2024 with some provisions effective on May 13, 2024, the day Governor DeSantis signed the bill. Allows surplus lines insurance companies that meet certain financial requirements to take out policies from Citizens for dwellings that are not primary residences or homestead properties.
What are the two insurance laws in Florida? ›
General Information
Before you register a vehicle with at least four wheels in Florida, you must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance.
What agency regulates insurance companies in Florida? ›
The Office of Insurance Regulation (OIR) is responsible for all activities concerning insurers and other risk bearing entities, including licensing, rates, policy forms, market conduct, claims, issuance of certificates of authority, solvency, viatical settlements, premium financing, and administrative supervision, as ...
What is the number 1 insurance in Florida? ›
Based on our findings, State Farm, Geico, Progressive and Allstate offer some of the best car insurance in Florida.
Who has the cheapest homeowners insurance in Florida? ›
Cheapest home insurance companies in Florida
Tower Hill is the cheapest homeowners insurance company in Florida, offering an average rate of $2,443 a year. Not only is Tower Hill's average rate the lowest in the state by far, but it's more than 40% cheaper than the state's average price for home insurance.
