Florida Insurance Rate Hikes–What You Need to Know and What You Can Do About Them
“Why is my homeowners insurance premium so much higher?”
At Galezano Insurance, we’ve heard this question a lot lately. We know how frustrating this can be and we want you to be prepared. So far, the 2020 year has thrown some large curveballs at Americans nationwide, and specifically toward Floridians. Aside from a global pandemic that has affected the health of our state, jobs, and businesses–insurance rate hikes are beginning to hit across Florida. While there’s no way to avoid them, it’s crucial that you’re informed. Many carriers are even cancelling customers, leaving them scrambling for coverage but terrified of the high cost of getting new insurance.
You may have noticed your rates going up already. Because of recent major hurricanes, insurance fraud, lawsuits, and major hurricanes forecasted for the seasons ahead–reinsurance rates have skyrocketed. This is forcing carriers to push rate hikes onto homeowners.
Despite its beautiful beaches and endless sunshine, Florida has a dark secret: a high risk of natural disasters in the form of hurricanes. As long as you’re a Florida resident, there’s no way to avoid rate increases–especially after the recent series of damaging hurricanes the state experienced.
It’s not the news people want to hear. We know it’s discouraging to open up harmless looking mail only to get that just-punched-in-the-gut realization that your premiums just went up by 10-26%. Ouch!
At times like these, we are arming our customers with information and education. We don’t want our clients to be penalized because of what they weren’t aware of when it comes to homeowners insurance.
Rate Hikes are Here to Stay...for Now
At Galezano Insurance, we are cautioning our clients not to make any sudden changes on their policies or which insurance companies they use. Without the experience and knowledge of an insurance expert, you could end up paying even more.
Now is a good time to review your policy. If you have questions about it, or wonder if there are things you can do to lower the premium, we are here to help.
It May Be Beneficial for You To:
- Consider having a new roof installed on your home, especially if it’s over 17 years old. This could be causing your rates to be increased even higher. Older roofs are high risk in a hurricane-prone state, and insurance companies have to protect themselves from that risk.
- Increase your deductible. We say this with caution because it’s also important that you can afford to pay your deductible if a disaster were to happen. Always make sure the deductible amount you select will fit in your budget. We recommend setting that amount aside in a savings account you can’t touch, so it’s there for you in an emergency.
- Hire a company to do a wind mitigation inspection. It will cost you money, but could save you money on your insurance premium. Insurers offer credits to homeowners who have these inspections done. Something to keep in mind though: for homes built after 2002, wind mitigation credits are usually automatically factored in (except for the hurricane protection credit). Another benefit to the wind mitigation inspection is the other tips you’ll get on how to lower your insurance costs even more.
Was Your Homeowners Insurance Cancelled? What to do Next
- Look at the reason the policy was cancelled. If it was because of something considered high risk such as needing an expensive home repair or having an older roof, you may want to get it repaired to resolve the issue.
- If you were cancelled because your home is in a high risk area (such as living close to the coast), you will probably need help finding an insurance company to cover you. The best thing to do is get guidance from an experienced insurance agent. At Galezano Insurance, we often get calls from Florida residents who were cancelled by their insurance company, and we will help you navigate through this challenge.
While Florida residents love living in the Sunshine State, it sometimes comes at a price. We know it's not the news you want to hear, but we also want our customers to get answers to their questions–and we will do all we can to lessen the impact of these rate increases.
Did you recently experience a rate hike in your homeowners insurance premium?
The team at Galezano Insurance is here for you!