The number of lawsuits has increased even more in the past two years. Insurance companies operating in Florida say they have been forced to increase rates to cover the costs of processing lawsuits. Another reason Florida homeowners are seeing an increase in their premiums is due to insurance scams. Gregg says the increase in claims is driven by “bad faith actors” in the contracting and litigation markets.
Florida's property insurance market is in crisis, as insurers face the costs of out-of-control litigation and billions in losses from recent natural disasters. When a home is damaged, an insurance claim must be filed with the airline, which can then assess the damage and provide appropriate compensation based on the landlord's coverage. The reduction in financial ratings affects homeowners with federally backed mortgages, those of Fannie Mae and Freddie Mac, because these lenders require home insurance companies with Demotech ratings to maintain at least an “A” level. However, there is hope that, as measures are implemented to protect companies and policyholders from reduced financial strength ratings, laws will be passed that could help curb scams and airlines will take a different approach to insuring homes in the Sunshine State.
Those who buy a vacation home or residence in Florida may experience a bit of shock when it comes to the higher premiums on their home insurance policy. Florida has always been a complex home insurance market, but recent problems are bringing the state market to the brink of collapse. In addition, Friedlander warns that, since Citizens insures many of the high-risk homes that other companies have left, “a major hurricane that hits Florida could have devastating effects on business and industry. The dishonest home contractor will then sue their provider for underpayments and the insurer will have to initiate legal proceedings or reach an out-of-court compensation agreement.
Florida's Insurance Consumer Advocate (ICA), Tasha Carter, agrees: “Insurance options for Florida homeowners have become increasingly limited and consumers are referred to as “insurance for insurance companies” by the United States Reinsurance Association, the reinsurance is a form of insurance that airlines purchase to reduce their risk. If you're struggling to find home insurance coverage in Florida, there are still a few companies that can help you. While insurance rates are rising everywhere, there are several ways Floridians can reduce their home insurance costs and avoid policy denial. Because many home insurance companies have been hit hard by rampant and fraudulent litigation, they may no longer be.
are as financially stable as before. McFaddin recommends that you “work closely with your insurer or insurance agent to see what options may be available to you. Florida home insurance has always been complex because of the state's high risk of suffering storm damage, but the incidence of fraudulent roof claims has brought the market to the brink of collapse. In addition, there are ways to reduce the impact of home insurance fraud and help prevent companies from having to liquidate.