Rising Homeowner's Insurance Prices?

If you own a home in Florida, you’ve probably seen your homeowners insurance increase considerably over the last couple of years.  Yes, there has been billions of dollars in damage from storms that have ravaged Florida over the last few years that have contributed, but that is not the whole story.  It unfortunately is much deeper than that.  As a homeowner, I think it is important to understand what is happening in the insurance industry and how it affects us and our budgets.

Florida homeowners pay on average $3,600 a year for insurance on their homes, double the national average. The driver of this increase?  Lawsuits.  Insurance companies paid out over $15 billion in claims from 2013 to 2020, but only 8% of that actually went to consumers.  71% of that money was paid to attorneys.  There are 384 lawsuits a day in Florida versus 2 per day on average in every other state related to homeowner’s insurance claims, according to Jim Pihl of Brightway Insurance.  70% of those claims are roof related.  Roof repair fraud schemes are at the root of the rising problem of high insurance costs.

So what can you do?  There are a few things that can help mitigate rising costs.  Number one, say no to any roofing company that goes door to door, promising a new roof for free.  Not only will it cost you more money in the long run, but to all other Florida homeowners.  You can also increase your standard and hurricane deductibles, have monitored burglar and fire alarms, and bundle your home and auto insurance.  Making modifications to your home to make it more resilient to inclement weather, such as storm shutters, roof tie-downs, and a wind-rated garage door, can also help reduce insurance costs.