At-Risk Homeowners Face Soaring Premiums with Few Options
A Growing Concern
When we first met Veronica Solomon in 2022, she was concerned about a $1,300 increase to her homeowner’s insurance premium. Two years later, she still has those same worries. "The first thing that goes through my mind is, ‘Am I going to be able to afford my house?’" Veronica said. Her premium has jumped from about $3,500 to almost $7,700 since 2020, and she’s unsure about what she would do if the increases continue.
A Statewide Problem
Veronica is not alone. In an informal NBC6 survey of dozens of viewers, everyone responded they are very or somewhat concerned about being able to afford their home because of what they pay for property insurance. Over 66% said they are considering moving out of Florida because of the premiums.
High Costs and Limited Options
An analysis earlier this year by Insurify found the average annual insurance cost for Florida homes with $300,000 in coverage is $9,213 – the highest in the country by far. Mark Friedlander, spokesperson for the Insurance Information Institute, a trade group, said that Southeast Florida homeowners have seen the highest average changes compared to the rest of the state. Friedlander expects the increases to start to moderate this year as the market stabilizes after state lawmakers passed sweeping insurance reforms in December 2022.
Competition and Pricing
Friedlander said that no insurance company has gone insolvent in over a year, and seven companies are now going to be writing new business in Florida. However, it’s unclear how many of those new policies will be written for homeowners in Miami-Dade and Broward counties. The requirement is to operate in the state, not to write policies in every county. Friedlander emphasized that competition will lead to competitive quoting and hopefully better pricing.
Limited Options and Concerns
Nearly 88% of the people who responded to the NBC6 survey said they feel they don’t have more options for coverage. About 12% said yes. Veronica says she doesn’t feel she is better off now compared to where she was two years ago. "Not one of those reforms is the ‘Veronica Solomon reduce her homeowner’s’ act," she said. "Not one. So, whatever those reforms are, they have no bearing on me."
Conclusion
At-risk homeowners like Veronica Solomon are facing soaring premiums with few options. The concerns are widespread, with 66% of respondents considering moving out of Florida because of the premiums. While the market is expected to stabilize, it’s unclear how many homeowners will see relief. The lack of competition and limited options have left many feeling uncertain about their ability to afford their homes.
FAQs
Q: What are the average annual insurance costs for Florida homes with $300,000 in coverage?
A: The average annual insurance cost is $9,213, the highest in the country by far.
Q: How many insurance companies are writing new business in Florida?
A: Seven companies are writing new business in Florida, but it’s unclear how many of those new policies will be written for homeowners in Miami-Dade and Broward counties.
Q: What is the requirement for insurance companies in Florida?
A: The requirement is to operate in the state, not to write policies in every county.
Q: Will the reforms passed in December 2022 help homeowners like Veronica Solomon?
A: Veronica Solomon says the reforms have no bearing on her situation, and it’s unclear how many homeowners will see relief.
