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Storm: One of the causes of high property coverage premiums in Florida

What Factors Cause Florida’s High Insurance Rates

Storm: One of the causes of high property coverage premiums in Florida

What Factors Cause Florida’s High Insurance Rates

By David Thompson, AAI, CPCU, CRIS

Executive Summary

  • In 2022, almost 1,200 people per day moved to Florida. They brought more vehicles here, drove more miles, and caused more accidents that resulted in more claims costs to insurers. They built more new houses that increased the “structure density” in the state, resulting in increased claims payments from insurers.
  • Going back to Hurricane Andrew in 1992, hurricanes have cost insurers hundreds of billions of dollars. Florida is “hurricane alley.”
  • Florida accounts for nine percent of homeowners insurance claims countrywide, but 80 percent of the litigation. People like to sue in Florida, which has been termed a “judicial hellhole” by some organizations.
  • Reinsurance costs for insurers have increased dramatically. These costs are passed along to consumers.
  • About a dozen insurers have become insolvent in the past few years. These costs are passed along by the guaranty association (FIGA) to consumers.
  • Florida has a long history of a favorable court system for plaintiff attorneys.
  • Seasonal residents with multiple homes and cars must weigh the benefit of that luxury.
  • Inflation of building costs over the past few years has resulted in increased claims payments.
  • Abuses of assignment of benefits resulted in increased claims costs by insurers.
  • Florida’s pure comparative negligence concept, unusually long claim filing deadline, and the favorable (to plaintiff attorneys) bad faith claim concept caused insurance premium increases.
  • Some of the legislative reforms passed in 2022 and 2023 have already resulted in some favorable responses by insurers. The actuarial data will take several years to come in and there will not, most likely, be any immediate rate relief.

Full Blog Article

Whether it’s auto or home insurance, price is a significant consideration with any household budget. This article should help you understand some of the factors involved in insurance pricing and how they can impact your premiums both present and future.


Every single day, approximately 1,141 people move to Florida. Last year (2022) the total was 416,000 new residents.

Between 2010 and 2021 just under 3 million relocated here, adding more cars to our roads, building more houses and condominiums. Our “Sunshine State” appeals to millions of “snowbirds” and it’s not just the sunshine–we also have no state income tax and a pretty good reputation for being a fun place to live and retire.

NOAA (National Oceanic & Atmospheric Administration) reports that 76.5 % of Floridians live in high-risk coastal areas. One example, in Indian River County, the population increased by 36 percent from 2000 to 2021. Records show 7,834 building permits were issued for single family houses and 1,192 were issued for multi-family projects.

While such massive growth may increase the tax base, it also places more residents in areas where cows and citrus trees used to be. And, according to Swiss Re, virtually all of them are required to have insurance which, according to the Insurance Information Institute (III), costs four times the national average in Florida.

When these factors and those that follow are combined with Florida’s traditional inclination for frivolous litigation, including the national distinction as a “Judicial Hellhole,” the result is higher premiums for everybody. Legislation passed in 2022 and 2023 has already begun to stem the tide of lawsuits (see “LITIGATION” below).

The following are some other factors contributing to Florida’s insurance rates.

REINSURANCE: Just like consumers buy insurance to protect their financial assets, insurance companies buy such coverage (called reinsurance) to help fund catastrophic losses. Florida is the world’s hurricane highway with some of the worst storms in history like Andrew, Opal, Charley, Ivan, Jeanne, Frances, Wilma, Irma, Michael, Sally, Ian, Nicole, Idalia, and more. Hurricane Ian damage reports have been over $65 billion. Reinsurance costs have increased drastically over the past decade and usually average from 40% to 60% of a homeowner’s entire premium. In one 18-month period in 2004 and 2005 Florida averaged one hurricane every 60 days.

INFLATION: The inflation rate for all goods and services over the past 15 years is higher than historical levels. But remember that insurance claims are paid based on “replacing” damaged property not the purchase or sales price of a house. While prices are constantly in flux, some reports show construction costs have increased by 19 percent since pre-pandemic levels. Combine that with what is often termed “demand surge” after a hurricane and it’s clear that insurers are paying out significantly more in property losses, especially those related to catastrophes.

INSOLVENCIES: Some would say this one is more of a symptom than a problem, especially for property insurance. None the less, a dozen insurance property carriers have failed in the last five years—a statistic not found in any other state. Insolvencies must be funded, and claims must still be paid, usually by assessing other insurers via the Florida Insurance Guaranty Association (FIGA). This and other assessments are reflected in Florida homeowner rates.

SEASONAL RESIDENTS WITH MULTIPLE HOMES: Many Florida residents own secondary homes in another state. The reality is that the luxury of owning multiple homes and multiple cars in multiple states comes with a price. Such residents must weigh the benefits of this arrangement because paying premiums on multiple homes is similar to paying taxes and utilities in multiple states.


In 2021 there were 42,939 highway accident fatalities, the highest number since 2005 when fatalities began to fall. More people are driving more miles, causing more accidents.

In the same year, 31 percent of the fatalities were alcohol related, and that figure increased by 14.2 percent over the previous year. One report stated that Americans purchased and consumed more alcohol during the pandemic than in years past, leading to more accidents and fatalities.

Long gone are the days of going to the auto parts store and getting a headlight for $10.00. Today’s technology-equipped cars cost a lot more to repair. Because repairs for electric cars are about double that of gas cars, their insurance also costs more. Supply chain issues have led to price inflation on used cars and the price of repair parts. It’s not unusual for a simple rear end collision to cost over $5,000.

III estimates that over 20 percent of Florida automobile owners carry no insurance. A few years back, the Florida Office of Insurance Regulation (OIR) published a report showing that of the cars with “any” insurance, 51 percent had liability coverage of $25,000 or less. Thus, uninsured motorist coverage is critical to carry, and the cost of that specific coverage has increased dramatically for the same reason.

One major national insurance company recently reported that its auto premiums will have to increase 20-25 percent a year until 2025. Some of Florida’s tort reforms may help, of course. And there is currently an effort to repeal Florida’s No-Fault law which might also have a salutary impact on rates.

LITIGATION: According to data from the National Association of Insurance Commissioners (NAIC), while Florida accounts for only 9% of the homeowners claims in America, it is responsible for close to 80% of America’s property lawsuits. Litigated claims cost 5 times more than non-litigated claims.

This obviously out of control problem resulted in the most comprehensive tort reforms in Florida’s history. After these reforms passed but before they became effective notices of lawsuits were filed to avoid the reforms. Under normal circumstances Florida would experience close to 120,000 annual property suits. After the reforms passed, but before they became effective, close to 280,000 notices of litigation were hastily filed to avoid application of the reforms. For a period of time the cost of those suits will be reflected in rates.

Here are just some of the tort reforms that will largely relieve the costs of frivolous homeowner litigation going forward.

Assignment of benefits: In an “AOB” action, a homeowner might sign a contract with a water remediation company, contractor, roofer, or automobile glass shop. In “layman’s terms” this could be viewed as giving a power of attorney to a third party to represent the customer. While AOBs by themselves are not bad, abuses lead (in part) to fraudulently inflated claim payments, legal costs and thus, higher premiums. An unscrupulous AOB contractor might inflate a damage repair estimate, file a claim and demand payment. When the insurer objected to that amount, based on their own damage repair estimate, the AOB contractor filed a suit. Recent tort reforms prohibit the use of AOB’s for personal and commercial residential policies, with a few exceptions. Likewise, in 2023 the legislature passed legislation prohibiting AOB contracts relating to windshield glass damage.

Contingency Fee Multipliers: Most plaintiff attorneys take a case based on a contingency arrangement, meaning the customer pays nothing unless they win in court. The court will look at the specifics of the case and award attorney fees based on the “lodsestar” method–the number of hours spent on the case multiplied by an hourly rate.

A “multiplier” can be applied of up to 3 times the lodestar rate. Florida was the only state that did not follow the U.S. Supreme Court standard of applying a fee multiplier only in “rare and exceptional” cases. The reforms repaired this anomaly.

One Way Attorney Fees: Florida has a long history of generously awarding fees to plaintiff attorneys. In cases where the insurer offered a settlement amount and the court awarded just $1.00 more, the plaintiff attorney was entitled to their fees. Legislation in 2022 and 2023 made material modifications to this concept removing a major incentive for so many frivolous suits to be filed.

Comparative Negligence Changes: States differ in their system of negligence. In some states, called contributory negligence states, if (as an example) a driver is just five percent at fault in an accident, they can recover no money from the other driver because they “contributed” to the negligence. Florida, until 2023, was a “pure comparative negligence state.” The fault of each party was “compared” and each party recovered based on the degree of negligence. For example, a driver who was 80 percent at fault could still collect 20 percent of their award from the other party. Based on the 2023 legislative changes, if a party is more than 50 percent at fault, they cannot recover from the other party. Again, this will result in fewer frivolous lawsuits.

Statute of Limitations For Negligence Claims: The legislative changes in 2023 reduced the timeframe to file a negligence suit from four years to two years. This will result in fewer lawsuits over time.

Bad Faith Claim Reforms: An insurer can be accused of not settling a claim “in good faith” by misrepresenting facts or failing to comply with policy and/or statutory provisions. As such, they can be found to act in “bad faith” and can face substantial monetary penalties. For example, one change would require that the insurer be found not to have paid a claim or to have underpaid a claim before a bad faith claim can be filed. Prior to the reforms an allegation of bad faith was the norm even prior to an adjudication of guilt.

Other legislative reforms were also enacted during 2022 and 2023 that will have a salutary impact on rates going forward. Some are already having a favorable impact. See Glimpses of Optimism.

For complete information on all the legislative changes see the report from Florida’s Insurance Consumer Advocate.

I would also recommend buying a copy of Scott Johnsons’ book, Collapse of an Evil Empire, which has been endorsed by numerous legislative leaders and explains what was going on behind the scenes with respect to litigation.


For homeowner’s insurance…

  • When buying a new home make sure it’s built to the current state and local building code. Obtain a wind mitigation report (About $125) so that all credits can be applied.
  • Check with your insurer or agent to confirm you’re getting all appropriate discounts. Examples are new house credits, multi-policy credits, claims free credits, gated community credits, and other assorted discounts.
  • Keep your roof and water heater current. Many insurers balk at ages over ten years.
  • Take a proactive approach to claims mitigation. For example, consider turning the water off when you leave town for even one night, and regularly inspecting all water connections under sinks, toilets, washers, and other parts of the house. Non-weather-related water claims are the number one cause of loss for homeowners.
  • Replace washer hoses every five years, even the upgraded metal hoses. Install impact glass or shutters and secure them even for a minor hurricane.

For auto insurance…

  • It is very important to maintain a good driving record and credit history. Check with your agent about potential discounts for taking a defensive driving course.
  • Bundle your auto insurance with your homeowners insurance whenever possible. With some insurers the savings can be as high as 20%.
  • As difficult as it may be, avoid expensive cars that cost $75,000 or more. Look into tracking device discounts that verify good driving habits but… be aware of what data is collected.
  • To avoid problems during the term of your policy, make sure your insurer/agent knows about all household residents regardless of age but especially teenagers whether of driving age or not.


Be cautious when moving to a new insurance company based solely on price– a lower premium can be due to lower coverage.

Also, an insurance company can cancel a new policy for any reason within the first 60 days with just a 20-day notice. This “free look” period is used to conduct inspections (inside and out) and to check prior claims, residents in the household, credit ratings including past bankruptcies and more.

Information discovered during that first 60 days can, at times, lead to a mid-term cancellation making it difficult to find replacement coverage or to return to your previous carrier. This is also true for auto insurance.


Originally posted on Johnson Strategies, LLC

Home with cash as a roof representing a home insurance free quote

Why the Florida insurance industry continues to experience major increases in home insurance premiums

Home with cash as a roof representing a home insurance free quote

Why Property Coverage Premiums Are Rising?

There have been over 8 carriers shut down in the last 2 years and it has everything to do with the age of roofs and attorneys targeting those claims and applying their one-way fees which has led to over $1.5 BILLION in FLORIDA claims for EACH year since 2019. This has driven the Reinsurance carriers out of Florida (those are the carriers that back the Florida carriers for catastrophic hurricane damages) which has created a further mess to this whole situation.

As such, the reinsurance carriers who remain in Florida were recently clobbered by the storms, so those carriers have doubled or tripled their premiums. This is why so many carriers have been shut down by the State.

Now May Not Be a Good Time to Change Insurance Carriers

Generally speaking, the best time to shop your policy is at your renewal. Renewal offers are usually sent about 45 days to 2 months prior to your renewal date - to give you time to review the policy and make any changes, if needed.

With hurricane season coming up, it may be safer to look at ways to reduce your current policy premium instead of switching to a cheaper policy, especially with strict underwriting requirements and carrier inspections for new policies. If your home is not in like new condition, you could potentially be cancelled and left uninsured in the middle of hurricane season!

Premium Increases

"Reinsurance, which is insurance for the insurance company, is expected to increase rates for Florida carriers in June, just as hurricane season begins."
-More rising home insurance rates will be coming for Florida customers

"Speaking with WFLA.com, Rollins said in the past four years, policy rates have gone up 50% for Floridians, and the rate increases aren’t stopping. He said the industry, as well as various state officials, are expecting reinsurance costs to go up between 40% to 50% or more in June."

"Reinsurance is “the largest expense for most homeowners insurance companies,” according to Rollins."

"The rates themselves are costly, with Insurance.com reporting most companies are charging their Florida customers between $4,000 and $5,000 for premiums, on average, though there are exceptions."
-Florida property reinsurance rates expected to jump 40% to 50% in June

"Florida homeowners are projected to pay an average of more than $4,000 in the near future, nearly three times the U.S. average, according to III."

-The Florida property insurance crisis: Why home insurers are leaving Florida

Underwriting Changes

Most carriers do not accept roofs over 10 years old for NEW business. This is likely another situation where it will be best to stay PUT, and look for ways to reduce your current premium, to avoid being cancelled for Roof Condition.

Carriers are no longer making exceptions to the underwriting guidelines. In fact, they have doubled down to make sure their guidelines are being followed.

It is very important to avoid a lapse in coverage and make sure your premiums are paid on time! The options available when shopping for insurance have already dwindled - if you have a lapse, it becomes increasingly more difficult to get approved for insurance.

Carriers are also very strict on claims history. Please be sure to speak with us FIRST before filing a claim, so that you can make an educated decision since this can likely affect your insurance eligibility for 5 years.

Carrier Financial Stability

Our agency is focused on keeping our clients insured with the most financially sound carriers.

We fully understand our clients needs for obtaining an affordable policy. Our goal is to find something economically feasible without sacrificing important coverages and carrier integrity. Those types of carriers likely cut costs in very important areas like claims service, which can heavily impact you when you need it most - or may be at risk to go out business.

"United Property & Casualty Insurance (UPC) is the 10th property insurance company in Florida to enter receivership in the last three years, meaning they don’t have enough funding to pay out claims."
UPC is the tenth property insurance company in Florida to go insolvent in the last three years

We Are Here for You!

We are hoping to see the industry stabilize in the near future. We believe there may be some time before we see this still but we are here every step of the way for our clients.

Please remember, not all insurance agencies, insurance quotes, and insurance companies are built the same. We take our responsibility to educate our clients seriously. We want to help guide you as best we can. We want to provide quotes that will meet your budget but also make sure it protects YOU!

Our Mission:

Mizrahi and Garris Insurance Agency is committed to providing a level of customer service that is much greater than the typical personal lines insurance agency. For all auto, home, life and business insurance customers, we make it our ultimate goal to match an individual with an insurance policy that is of both the highest quality and reasonable price. We are committed to servicing each client in a way that is unique to their own needs while following the strict ethical and procedural guidelines of our agency and the insurance industry.

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BEWARE of Cheap Home Insurance

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Beware of Cheap Premiums – Too Good to be True!

This month, we are sharing coverage education, insight into industry trends and expectations, and explaining that cheaper is not always better when it comes to home insurance.

While the information we share may seem alarming, we want you to know we are 100% in the trenches with you! We are here to guide you in the best way we can through these troubled insurance times, as well hold on together to get through this.

Insurance 101

Home insurance is designed to protect us in the event of a catastrophic loss. We like to educate our clients on what coverages mean. Are you properly insured?

Coverage A- Dwelling: This amount should be the estimated cost to rebuild your home. This coverage takes into account the house and permanently attached structures. This is why we take a detailed info page when you call us for a quote.

Coverage B- Other Structures: This coverage is designed for detached structures. For example: detached garages, fences, gazebos, pergolas, etc. This is typically a percentage of Coverage A.

Coverage C- Personal Property: This coverage is for your personal belongings – from your furniture all the way down to your toothbrush! For example, go into your bathroom and take a quick catalog of all your personal belongings: shower curtain, shower liner, shower caddy, loofa, shampoo, conditioner, body wash, face wash, razor, toothbrush, toothpaste, floss, mouthwash, cotton swabs, moisturizer, skin toner, etc. In the event of a catastrophic or total loss to your home, these personal property items may be items that need to be replaced. The standard coverage with most carriers is at 50% of Coverage A.

Coverage D- Loss of Use: If you cannot live in your home due to a claims scenario while the home is being repaired or rebuilt, this coverage helps pay for your additional living expenses above what you normally pay, up to your policy limits. Most carriers set this at 10% or 20% of Coverage A.

Coverage E- Personal Liability: This coverage may assist if you are responsible and sued for someone’s injuries or damage to their property. For example, if someone is injured due to a loose railing on your steps. The standard limit for this coverage is $300,000.

If you have renovated your kitchen or bathrooms, added a pool, added a screened enclosure, etc – please be sure to let us know. We want to make sure you are properly insured.

Industry Trends, Premiums, & Problems

“Citizens President and CEO Barry Gilway has bluntly stated ‘the industry is on life support.‘” *

This year alone, there have been as many as 7 carriers either be shut down by the state of Florida or pulled of out of Florida entirely. That means it is slim pickings – the era of ‘choice‘ has dwindled down. Before, we were able to offer upwards of 10 options to a client, easily! Now, unless it’s new construction, we may find 3 options – or we may need to make suggestions on the current policy to try to reduce the premium.

“In 2021, Florida generated 7.03% of property insurance claims nationwide but was responsible for 76.32% of the nation’s homeowner insurance lawsuits filed.“* These numbers are alarming and they are causing significant issues in the Florida insurance market.

Due to the vast amount of litigations on roof claims and inflated claims costs, carriers have made major changes to stay viable. Many carriers have instituted strict underwriting guidelines – including year built limitations, roof age restrictions, and have had to increase premiums. They’ve also introduced massive non-renewals and cancellations to reduce exposure.

It is no secret that home insurance rates in Florida have increased. We have seen substantial rate increases – rates doubling and tripling from just the year prior. We honestly find ourselves having the same conversation multiple times a day and hearing heartbreaking stories from many clients, scared that they may lose their homes due to the rising insurance costs effecting their mortgage payments. It’s a scary thought and we are doing absolutely everything we can to help!

The unfortunate reality is that insurance premiums have risen dramatically. Gone are the days of seeing insurance premiums less than $1,000 – even low $2,000 rates are extremely rare. Here are some premium examples for proper coverage with reputable carriers
$2,514 – 1987 Year Built, 2020 Roof
$3,167 – 1990 Year Built, 2008 Roof
$7,974 – 1949 Year Built, 2017 Roof
$2,265 – 1990 Year Built, 2012 Roof
$3,017 – 1984 Year Built, 2022 Roof
$2,749 – 1974 Year Built CONDO, 2018 Roof
$1,863 – 2016 Year Built
$1,555 – 2021 Year Built
$1,819 – 2022 Year Built

Please keep in mind, these are only examples of recent rates. There are many other underwriting and rating factors that will determine eligibility and premium.

*Crisis in Home Insurance

Thinking of Shopping?

As an independent agency, we have access to the top carriers in Florida. We are happy to review policies for our clients to see if they are eligible with other carriers, or if we need to make recommendations on the current policy.

As we mentioned earlier, carriers have instituted strict underwriting guidelines. When a new policy is written, a carrier will perform their own inspection to confirm eligibility (this is after we have submitted the required insurance inspections like a 4 Point Inspection or Wind Mitigation Inspection). This means you are now opening up your home to new inspection requirements/fresh eyes, and carriers are stricter than ever on the condition of homes. The reason carriers are inspecting homes is due to agents not properly doing their field underwriting, so carriers have to back check all agents to be sure they are getting the correct risk.

This could lead to repair requests and additional costs, or policy cancellation. We’ve received underwriting memos for many things: overgrown trees/shrubbery, broken screens, broken window, cracked driveways, yard debris, corroded plumbing fixtures, roof condition, peeling paint, wood rot, fascia damage, and more. They are looking at everything.

When it comes to home insurance, cheaper is NOT better!

It has certainly been a very stressful few years, and we are all feeling the effects of inflation on all aspects of life. However, insurance is one of those services that matters very much in the event of a claim.

We think of insurance as a commodity, but like anything else, we typically pay for what we get. If you find premiums to be significantly lower than what we are offering, there is a reason why.

We will certainly review your insurance and do everything we can to find the best fit for YOU, but we also will advise you about various coverage rather than just cutting coverage without your knowledge or consent. Unfortunately, this has been the trend with a lot of insurance agents. We will certainly reduce coverage, but you will be included in such discussions so you are AWARE of these reductions.

We Are Here to Help!


There’s a lot of incorrect info going around. We take pride in educating our clients on the ins and outs of insurance – even if that means a hard conversation sometimes. We want you to be educated to make the best informed decision for your family.

Family in front of home with St.Johns home insurance

Insurance St. Johns, Florida

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Insurance Coverage in St. Johns is Unique

The 32259 area code as well as all of St Johns County is one of the fastest growing areas in Florida. In fact, it’s grown by over 22% since the year 2000. Many parts of this area are expected to grow even more in the years to come. Insuring your home, auto or anything else has some unique aspects when you live in this area. Some of those factors are:

Insurance Credit Score

When insurance companies give you a quote on your home or other type of insurance, they use an Insurance Score to help determine the cost. This rating is computed by factors such as the probability of an individual filing an insurance claim while under coverage and their credit rating. Many home owners and residents of the 32259, 32081/32082 area codes have favorable ratings in these areas which translates into a favorable insurance score. Each insurer has their own method for calculating this score and we continually monitor a range of insurance carriers to find the best insurance for our customers.

Preferred Risk

Many residents of St. Johns and surrounding area also fall into a category insurers call “Preferred Risk”. Put simply, this means that we can find them better rates than other categories of customers generally referred to as Standard, Non-Standard, or Assigned Risk.

Newer Homes

Because this area has grown so much in recent years, many homes are generally newer construction than in other areas of Jacksonville. This can also help translate to lower rates on home insurance.

Let Us Help

We’ve worked with residents of St. Johns, Durbin Crossing, Switzerland Point, Fruit Cover and throughout this region in finding the right insurance coverage and just the right price. Contact us and we’d be happy to provide a free quote.


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Escrow Analysis, Home Insurance, & Home Maintenance – Oh My!

It's that time of year again - the annual escrow analysis! Most lenders complete an escrow analysis once a year, typically near the end of year to ensure enough funds are being collected for upcoming home insurance premiums and property taxes.

We usually see an influx of requests to shop insurance policies due to the escrow analysis report. How does this affect home insurance? In our October Newsletter, we talked about major changes in home insurance underwriting. Insurance carriers have strict guidelines for new policies - including the condition of the home and property. Home maintenance is very important to all insurance carriers!

We want to make sure you are in the best possible position if you need to shop your insurance. Below are just some examples of home maintenance issues that insurance carriers have sent cancellation notices out for. If you are in the market to shop, please make sure to review this list and make a checklist for your home!

Roof Condition

Insurance carriers not only have an age requirement for roofs - they also have a condition requirement. Granular loss is a sign of an aging roof that is in poor condition or needs replacement. This may not be seen from the ground, but can be seen upon closer inspection. Lifting and curling shingles, as well as roof patches, are also signs of a roof being at the end of its life span. These are major red flags to insurance carriers and can lead to cancellation or non-renewal.

Rolled roofing is typically used on flat roof areas or patios. This type of roofing usually has a much lower life span than shingle roofing, so it should also be inspected routinely.

Stucco Cracks / Siding Damage

Your home's exterior siding acts as a shield to outside elements. Damage to the siding - like cracks in the stucco, wood rot, and cracks in the vinyl siding - can lead to major issues. These maintenance issues are very important to keep an eye on and repair as needed.


While trees add wonderful shade and landscaping to your property, it can also damage your roof if not properly maintained. Please make sure tree branches and tree limbs are cut back and not touching the home.


Mold is another indication of poor maintenance to home insurance carriers. With Florida's wild weather and plants, it can quickly be a problem if not removed. Cleaning routines will depend on the exterior siding material, so please be sure to research the proper method based on your type of siding.

Damaged Fencing

Damaged fencing can add an unintended risk to property owners. It is imperative that all damaged fencing be repaired to avoid causing potential injury.

Driveway / Walkway Cracks

Driveway and walkway cracks can be a major tripping hazard due to the uneven pavement and can lead to potential injury. Depending on how extensive the cracks are, they may be repairable or it may be time to have the driveway or walkway redone.

Plumbing Corrosion

Another maintenance item on your checklist should be evaluating the plumbing fixtures under your bathroom and kitchen sinks, behind your toilets, and your water heater connections. Corrosion can have a white or green color to it. This can lead to a water leak and water damage. It may be time to have a plumber come out to replace the valves or supply lines.

Roof Debris / Gutter Debris

Roof debris and gutter debris can affect the integrity of the roof and potentially cause water intrusion into your home. The middle photo, especially, shows a clogged gutter filled with water. The water overflow could become a huge issue causing potential water damage.

Yard Debris

Yard debris, like abandoned appliances or excess garbage, is not acceptable for insurance carriers. Local city services often have special large item pick up days or free service for scheduled pick up of appliances.


While this will vary by carrier, most insurance carriers require any steps that have 3 or more stairs to have a handrail. The first photo here would fail the requirement. The second photo is an excellent example of a safety handrail installed.

Broken Windows

Broken windows can be a potential safety issue and allow weather elements into the home to cause damage.

In Summary -

Since all insurance carriers have tightened up their underwriting guidelines, we want to make sure that you are in the best possible position if you need to shop your policy. If you have any questions or concerns, please feel free to reach out to us - we will be happy to assist!

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Why Home Insurance Premiums are Rising in Florida

Cause and Effect

As the saying goes – for every action, there is an equal and opposite reaction. One of the most popular questions we get is: Why?


  • is my premium so high?
  • am I being non-renewed/cancelled?
  • did my renewal increase so much?

So, how did we get here? What are the causes behind these current insurance trends? It comes down to a few things: increased claims litigation, hurricane and storm claims steadily rolling in, and rising reinsurance costs.

Litigation is a huge issue in Florida. “According to National Association of Insurance Commissioners (NAIC) data mined by the Florida Office of Insurance Regulation, while Florida homeowners insurance claims accounted for just over 8% of all homeowners claims opened by U.S. insurers in 2019, homeowners insurance lawsuits in Florida accounted for more than 76% of all litigation against insurers nationwide.” Increased claims costs due to litigation is causing rates in the industry to skyrocket.

Reinsurance is basically insurance for insurance companies. With higher claims costs and higher loss ratios (amount of claims filed), the reinsurance rates have increased. These higher operating costs for insurance companies are spread out and passed along to consumers. In order to stay viable, carriers have had to make many, many changes.

NAIC Data: Florida Property Lawsuits Total 76% of Insurer Litigation in U.S.

Policy Cancellations & Non-Renewals

In the last few months, we have seen carriers process massive cancellations in Florida. Three home insurance carriers dropped more than 50,000 policies in Florida alone in the past few months. Along with cancellations, we are seeing many carriers process Non-Renewals for “Exposure Management.”

Carriers are having to re-evaluate their risks and reduce exposure in certain areas. If the carrier issues a cancellation or non-renewal to a policy, they send a notice by mail to the insured – it is vital that any and all mail coming from your insurance carrier is opened and reviewed immediately.

3 companies dropping more than 50,000 Florida home insurance customers

Premium Increases

At every renewal, it is expected that there most likely will be an increase in premium. Unfortunately, we very rarely ever see home insurance premiums decrease or even stay the same. As our homes age, the risks can become greater with older systems like our plumbing, HVAC, roofs, electrical, etc. Home insurance carriers have internal systems and algorithms that rate our risks based on historical data collected.

Recently, we have seen much higher than normal rate increases. We have had many clients whose premiums have tripled or more, which has been unheard of in prior years. The insurance market is trying to balance itself. Many carriers who initially provided very low rates are having to dramatically increase rates due to high claims costs, litigation costs, increased reinsurance costs.

With what we’ve seen happening, along with a few carriers going out of business in the last few years, it is more important than ever to make sure if you are shopping your policy, that you check the financial stability of the carriers you have been quoted with. This is extremely important to Dennis and he makes sure to keep an eye on this for the carriers we write with. We share this information with our clients so they can make an educated and well-informed decision. Your home is likely to be one of your biggest purchases and assets – we want to make sure you are informed and protected!

Got sticker shock from your Florida homeowners insurance? Read this.

Underwriting Changes

Not only have our premiums been affected by what’s going on right now – so has underwriting. Underwriting is basically a process that insurance companies use to determine if they will offer a quote by evaluating different risk factors. These “Underwriting Guidelines” will vary from one insurance carrier to another. They look at many different details like – age of roof, type of plumbing, age of water heater, claims history, occupancy, and much more. Our job as your agent is to verify all of these important details so we can properly match you with insurance carriers to quote.

A big issue right now in the Florida home insurance industry is roofs. A few years ago, many insurance carriers would take roofs up to 20 years old. Most carriers have tightened this requirement- many carriers have limited the accepted age of roof to 10 or 12 years.

They also look at the condition of the home to make sure it is being cared for and maintained. Once a new policy is written, carriers typically conduct an inspection to make sure the home meets their guidelines. They have become a lot more strict about the condition of homes. They will send out requests for repairs for things like peeling paint, wood rot, cracked window, driveway cracks, etc. It is imperative if you are searching for a new policy, that you make sure your home is in tiptop shape!

Carrier Closures and Financial Stability

Gulfstream Insurance was ultimately declared insolvent and shut down at the end of August. Earlier this year, we also saw American Capital Assurance Corporation meet the same fate.

This is why it is vital when choosing an insurance company to make sure that they are strong financially. Not all insurance companies are the same. A $200 difference in premium between quotes may be negligible when comparing the difference in how the companies operate. We have home insurance to protect us in catastrophic events, so we need them to be there when there is a legitimate claims scenario!

When is the best time to shop?

Generally speaking, the best time to shop your policy is at your renewal. Renewal offers are usually sent about a month or two prior to your renewal date – to give you time to review the policy and make any changes, if needed.

Again, it is imperative that any mail or email received from your insurance carrier is opened immediately. Shopping insurance policies takes time, especially in our current market. As an agency, we try to do as much preliminary underwriting as we can to match you with a carrier. Sometimes, inspections are also required. Carriers are also doing underwriting reviews before AND after a policy is written. Time is definitely an important factor as shopping takes more time and effort in this climate, with all of the changes in underwriting.

Please be sure to review your renewal offer when you receive it and reach out to us soon with any questions, concerns, or shopping requests. With massive rate increases, as well as mass cancellations and non-renewals, we are working as quickly as we can to get back to everyone in a timely matter. We are having to date prioritize in order to avoid any lapses. We truly appreciate your patience and understanding as we devote our concentration and time to each client and file that they deserve.

We Are Here for You!

With all of these changes being implemented, we are hoping to see the industry stabilize. We believe there may be some time before we see this still but we are here every step of the way for our clients.

Please remember, not all insurance agencies, insurance quotes, and insurance companies are built the same. We take our responsibility to educate our clients seriously. We want to help guide you as best we can. We want to provide quotes that will meet your budget but also make sure it protects YOU!

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