What Makes Florida Homeowners Insurance Rates Go Up?
According to the Florida Department of Insurance, these are just a few of the driving forces:
- Rising reinsurance costs for insurers
- Premium reductions for full implementation of mitigation discounts
- Fraud and inflated claims
- Erroneous or Fraudulent Wind Mitigation Credits at the Retail Level
- Replacement Cost Methodology
- Reported Sinkhole Claims
- Catastrophic Assessment Fees Applied Due to the 2004-05 Hurricanes
These increased costs and claims payments by insurers affect the capital and stability that insurers need to remain profitable and stable in order to continue paying claims, so the cost needs to be passed on to policyholders. evaporating providing fewer and fewer options. So what can you do to at least be informed and prepared?
Savings Tips for Homeowners to Consider When Buying a New Home
Choose a smaller house -Square Feet- size is still king the bigger the house the higher the replacement cost
Choose a house with updates – avoid old houses with outdated wiring knob and tube, plumbing and heating, air conditioning
Choose a home with Fire Protection -Distance to the fire station and fire hydrant
Consider the age of the roof. 10 years or less for tile roof can be 15 for tile roof
Consider building materials– masonry block built on frame built
Consider flood zones– Is the house in a flood zone (additional flood insurance may be required by your lender)
Current owners looking for the best rate on renewal or replacement
Avoid Claims: Claims are reported to the Comprehensive Loss Underwriting Exchange (CLUE) in some cases, even if you choose not to pursue the claim, for example, suppose you had water damage from an air conditioner or pipe burst, filed a claim and insurer The cost to repair or replace was determined to be $2,000 and you had a $2,500 deductible even though the company did not pay and you covered the cost, this claim could go to exchange and prevent you from qualifying for the higher rate or company affordable.
Manage your policy premium Optional coverages to lower your premium:
1. Increase your deductible options: $500, $1,000, $2,500, $5,000
2. Choosing depreciated personal property over full replacement
Elimination of optional coverage of sumps
3. Lower Other Structures Coverage: Detached Garage, Fences, Pool Cages, Swimming Pools This is standard at 10% Home coverage adjustments that affect your premium can be made from 10%, 5%, 2% or be completely excluded.
4. Lower Personal Property Coverage Anything not attached that you own: Appliances, Furniture Standard is 50% of home amount. Some companies allow you to reduce from 45% to a minimum of 25%.
5. Lower Homeowners Liability Coverage – can be adjusted to $100,000 or $300,000
6. Lower medical payments to others: optional $2,000, $3,000, $4,000, $5,000
7. Increase hurricane deductible: $500 flat, 2%, 5%, 10% or excluded coverage
Research discounts you may qualify for:
Ask your agent about discounts in advance, some companies do not offer them or have discontinued them. Discounts may apply for the following: protective devices, new home credit, wind mitigation, roof type.
1. protection devices– Monitored fire alarm, burglar alarm, gated community, guarded gated community
2. Household age- all homes built in 2002 or newer will receive a 68% new home discount on the hurricane wind portion of their premium.
3. Wind Mitigation Credits- Homes built after 2001 automatically receive the wind mitigation discount due to building code requirements, however, homes built before 2001 that have added a new roof after 2001 may provide a wind mitigation inspection from roofing contractor or apply for “Uniform Mitigation”. Verification Inspection” (form 1802) about $90-$150 savings can make a big difference in your homeowner’s annual premium depending on several factors by law to offer Windstorm Loss Mitigation discounts to qualifying homeowners. WLM is the act of minimizing the amount of loss caused by wind damage to your home.
Four. roof type– The HIP roof credit provides a substantial credit for the type of roof elevation. The roof must not include more than 50% of any other type of elevation on any one side.
5. Multi–Policy discounts– offer your car to your agent to see if you can get a joint policy discount
6. retired owner– discount for over 55s
store carriers
1. Use an Independent who has access to many carriers and let them do the shopping for you
2. Ask your agent for an annual review each year to determine any rate changes or options
3. Stay on top of current rate increases and what carriers are filing for them
If possible, avoid carriers that have recently applied for rate increase approval from the state
Allstate- Castle Key Insurance- Castle Key Indemnity has filed an average of 17.9%
State Farm- received a 14.8% raise
Royal Palm – awarded 21.7%
Citizens-granted 8.4%
