Florida’s Home Insurance Policies Jump In 2019

Florida’s home insurance policies are jumping again in 2019. What do you need to know?

There’s an inconvenient truth to living in South Florida. According to risk assessments, we live in the highest risk region of the country. That means that when it comes to home insurance policies, we’re paying more than anyone else for a similar property. It will also probably not surprise you that after Irma and Michael all of Florida, especially South Florida, is set to have to pay up again. But, that is not the entire story, tens of thousands of Floridians are being forced to make a change with carriers. 

The latest data shows that the average increase for 2019 policies is pacing 9.5%. The average homeowner’s policy in 2018 is at $3,575. We are set to see the average policy rise to more than $3,900 in 2019 compared to $2,350 nationally. That is just homeowners insurance. 

Be mindful that flood insurance premiums are also rising by even higher percentages next year. It will be around 18% on average for those in a flood zone. In the wake of the 04’-05’ hurricane cycle, homeowners insurance became a major obstacle when it came to affordability in South Florida. Additionally, nearly 90,000 Floridians are being dropped by insurance carriers, led by Citizens. 

The good news is that the Florida insurance market is still healthy and full of options. Some companies drop policies to maintain certain risk profiles for reinsurance rate purposes. We currently do not see any meaningful solvency issues like those during the crisis after the 04’-05’ cycle.  

The combination of high and rising taxes in South Florida, rising property values and insurance plans are enough to begin and to become concerned about sustainability issues once again. Do not let this catch you off guard. Be proactive and see what you are specifically facing next year before you get there. It will give you an opportunity to shop around and find a better deal if nothing else. 

Photo by: KERRY SHERIDAN/AFP/Getty Images

 

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