If you are a homeowner in the state of Florida, you likely already know that property insurance rates are rather high — after all, we do live in a severe weather-prone part of the country. That being said, the insurance industry as a whole has convinced Florida lawmakers to enact reforms that will potentially save millions of dollars every single year. So you can expect for your property insurance rate to drop soon, right?
Well, in short… no. In fact, insurers have found a different reason to restrict the ability to lower rates.
The Reform Package
Governor Ron DeSantis started the reform change by signing a package last week that was designed with the intent to reduce the number of lawsuits emerging in the wake of an event causing large-scale damages — more specifically, the lawsuits filed by repair contractors that convince their customers to sign over all of the benefits of their insurance claims. The reforms that were put in place were designed to make it more difficult for contractors and attorneys to collect the untold millions in legal fees from insurers to settle claims.
While it seems like the reforms are perfectly designed to allow rates to be lowered, as the monetary risk has been minimized, insurers are now saying that there is no way to know when the rates will be reduced — leaving homeowners all around the state with questions.
In today’s blog post, our team here at Supreme Public Adjusting will do our best to answer some of the questions that you might have about the future of insurance rates in Florida.
Rates Are Likely To Go Up
When you hear about a reform meant to lower property insurance rates getting passed, it can be a little discouraging to hear that rates are instead likely to be increased. But as the most recent allocation of benefits has been re-shaped, a new obstacle has presented itself — something that can hopefully be overcome in the next couple of years.
Who Is To Blame?
Who do you blame when the insurers are clearly not the ones at fault? Well, how about the people that sell insurance to the insurers — the reinsurers. Reinsurers sell insurance to insurers to protect them in the event of a catastrophic event that causes unimaginable damages. So it makes sense that reinsurers are not excited about the idea of lowering property insurance rates — because reinsurance rates are going up as well.
Why Are Reinsurers Raising Their Rates?
In the past few years, reinsurance companies have suffered extreme losses at the hands of hurricane season. So even though parts of the state like South Florida went unaffected by hurricanes last year, the reinsures still took losses when Hurricane Michael made landfall on the panhandle. As the entity that drew the short end of the stick, reinsurers seem to feel like they are entitled to recover the losses that they saw by hiking up their rates. In turn, the insurers must do the same to their property insurance policyholders to avoid taking a financial hit themselves.
When Can You Expect To Save Money On Property Insurance?
It is hard to say, but the new reforms allows insurance companies to sell policies that do not allow third-party claims from contractors and other entities. While it is unclear what insurers will begin to offer the new policy, but it seems likely that an insurer with its own or have partnerships with their own contractor network.
In The Event Of Damages, Contact Supreme Public Adjusting
There is not an easy way to go about dealing with property damage after a severe weather event, but when you do, be sure to get in touch with our team of certified public adjusters. At Supreme Public Adjusting, we are here to make sure that your damages are correctly assessed and noted so that regardless of the financial state of the insurer that you are awarded the proper amount to repair your damages. Contact us today to learn more about what we can do for you!