Florida’s home insurance policies are jumping again in 2019 – what you need to know
Bottom Line: There’s an inconvenient truth to living in South Florida. We live in the highest risk region of the country according to risk assessments. That necessarily means that when it comes to home insurance policies, we’re paying more than anyone else for like property. It’ll also probably not surprise you that after Irma and Michael all of Florida, especially South Florida, is set to have to pay up again. But that’s not actually the entire story – tens of thousands of Floridians about being forced to make a change with carriers. Here’s the latest...
The average increase for 2019 policies is pacing 9.5%
With the average homeowner’s policy at $3,575 in 2018... We’re set to see the average policy rise to more than $3,900 in 2019 (compared to $2,350 nationally). And that’s just homeowner’s insurance. Be mindful that flood insurance premiums are also rising by even higher percentages next year (around 18% on average for those in a flood zone). In the wake of the 04’-05’ hurricane cycle homeowners insurance became a major obstacle to affordability in South Florida. Additionally, nearly 90,000 Floridians are being dropped by insurance carriers, led by Citizens (which isn’t the worst thing in the world – trust me), so don’t be shocked if that happens to you, forcing you to shop around. The good news is the Florida insurance market is still healthy and full of options. Some companies drop policies to maintain certain risk profiles for reinsurance rate purposes. We don’t currently see any meaningful solvency issues like during the crisis after the 04’-05’ cycle.
The combination of high and rising taxes in South Florida, rising property values and insurance plans are enough to begin to become concerned about sustainability issues once again. Don’t let this catch you off guard. Be proactive and see what you’re specifically facing next year before you get there. It’ll give you an opportunity to shop around to find a better deal if nothing else.