Florida insurance squeeze

Florida homeowners are still getting hit with higher insurance bills in April, even as regulators and insurers say the market has started to steady. (wptv.com) West Palm Beach station WPTV reported that some owners are seeing better renewal offers, but others are still facing increases, with an Insurify estimate putting Florida’s average homeowners premium near $8,300 a year. The Florida Office of Insurance Regulation said in May 2024 that 10 companies had filed for 0% increases and at least eight had filed decreases, calling that the first downward trend in years. (wptv.com, floir.gov) The timing is blunt: Florida’s hurricane season runs from June 1 through November 30, and the Florida Department of Financial Services is telling residents to review policies now, not after a storm is named. Tallahassee Democrat’s April 13 checklist said homeowners should confirm deductibles, replacement-cost terms, exclusions, and whether they have flood coverage at all. (myfloridacfo.com, tallahassee.com) One of the biggest gaps is flood damage. FloodSmart, the National Flood Insurance Program site, says most homeowners insurance does not cover floods, and FEMA says a new National Flood Insurance Program policy generally takes 30 days to go into effect. (floodsmart.gov, fema.gov) Florida’s disaster agency makes the same point more directly: “If it rains, it can flood,” and standard home policies often leave that risk out. That means a wind claim and a flood claim can be two different problems with two different policies after the same storm. (floridadisaster.org, floodsmart.gov) Deductibles are another pressure point. Florida’s chief financial officer says insurers must offer hurricane deductibles of $500, 2%, 5%, or 10% of dwelling limits in most cases, which can leave homeowners paying thousands of dollars before insurance starts covering storm damage. (myfloridacfo.com) The market is also splitting by property type. Insurance Journal reported April 14 that Florida regulators extended supervision of American Mobile Insurance Exchange for another 120 days, the sixth extension in two years, as the company’s runoff drags on in the mobile-home market. (insurancejournal.com) Agents told Insurance Journal that coverage for mobile and manufactured homes remains hard to find, especially for units built before 1994. John Gardner of Lee County Insurance said average annual mobile-home premiums in parts of southwest Florida are now about $5,000, and some newer elevated homes face added complications over how platforms are insured. (insurancejournal.com) State officials and Citizens Property Insurance Corporation are still describing Citizens as Florida’s insurer of last resort while pushing policies back into the private market as conditions improve. But for homeowners opening renewal notices this spring, the practical job is still the same: check the deductible, check the exclusions, and check whether flood coverage is actually in force before June 1. (citizensfla.com, citizensfla.com, tallahassee.com)