Report: Florida has highest home insurance premiums in the U.S.
Posted in General on February 27, 2016
It may seem hard to believe, but it’s been an entire decade since a hurricane made landfall here in Florida. Indeed, Hurricane Wilma, which struck back in October 2005, was the last time we saw any sort of catastrophic hurricane damage.
While you would naturally think that our streak of relatively sunny skies — and good luck — would translate into lower insurance premiums for Florida homeowners, a recently released report shows that this is not the case.
According to the National Association of Insurance Commissioners, Florida has the highest home insurance premiums in the nation with an average of $2,115.
To put this in perspective, consider that second place Texas and third place Louisiana averaged $1,837 and $1,822, respectively, while the national average was $1,096.
Making matters worse, many critics are asserting that while home insurance premiums in the Sunshine State continue to trend upward, policyholders are actually receiving less coverage than their counterparts in neighboring states — including those situated on the Atlantic Coast.
According to the insurance advocacy groups, these expensive home insurance premiums can be largely attributed to the fact that despite going hurricane-free for the last decade, Florida still has the highest total of insured catastrophic losses in the nation, totaling $68 billion (adjusted for inflation) from 1985 through 2014.
Furthermore, they point to so-called abuses by contractors and other third parties who they claim are asserting control over insurance benefits and proceeding to drive up costs artificially, a phenomenon that frequently results in costly litigation.
Whether this is true or not, the fact remains that home insurance premiums in Florida aren’t going down anytime soon. As such, consumers would be well advised to perform their due diligence when shopping for homeowners policies and to always remember to consider speaking with an experienced legal professional if an insurer is refusing to cover a valid claim for damages to their property.