Why Florida insurance rates are climbing and what you can do about it.

Today we’re joined by a special guest, Heather Thies from State Farm. As most of you know, we’re having insurance troubles in Florida, so Heather is here to talk us through what’s happening and what you can do about it.

“A lot of people have been asking me why rates have been climbing over the past few years. Fortunately, our rates have only increased by about 5% at State Farm. However, I know that most people have seen double-digit rate increases or are having trouble getting insurance for older homes. 

These problems stem from the amount of insurance fraud and litigation we have in our state, especially around roof insurance claims. Florida makes up 7% of the U.S. population, and we account for 8% of all homeowner claims in the country. However, we also account for 79% of all claims involving litigation in the U.S. 

“Most of the money from claims goes to attorneys.”

That issue coupled with the fact that Florida’s domestic insurers paid out over $15.3 billion in claims from 2013 to 2019, but only 8% of that money went to the policyholders. Most of it went to attorneys, which is what’s really driving insurance costs right now. 

What can be done? The best solution would be legislation changes, so I would encourage you to reach out to your representative and share your concerns. You can also help by understanding what homeowners insurance does. It’s not a warranty or maintenance policy. The average asphalt roof lasts 15 years in Florida, but it’s not uncommon to see them fail after 12 years. 

If you have an older roof, it makes a lot of sense to do that sooner rather than later. You’ll recover some of those costs on your insurance policy as time goes on, and you’ll get some other discounts on your policy as well.

There’s a lot more to it than I can talk about today. I would encourage you to reach out to your agent before your policy renews and ask them any questions you have. If you have any other questions, you can also call me at (352) 394-6933. I may be able to help with some of your coverage concerns as well.”

Feel free to contact Heather if you have any insurance questions. If you have any real estate-related questions, please call us at (407) 499-8993. We would love to help you.