Three different property insurance companies told Florida’s Office of Insurance Regulation Tuesday they want big increases:
First Floridian Auto and Home asked for a 22.9% hike.
KIN Interinsurance Network wants a 25.1% increase.
And the biggest, Florida Farm Bureau, said it needs a 48.7% jump in rates for homeowners’ policies.
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Robert Aaron, First Floridian VP, said his company’s choice is not to leave Florida as dozens of other insurers have done over the past several years.
“We do not want to non-renew but we cannot continue forward at this unsustainable rate level,” Aaron said.
The insurance companies are three of the remaining few in Florida, the ones that have stuck around while claims went through the roof, largely because of roofs.
First Floridian showed a graph to insurance regulators today revealing its payouts have doubled in the past three years because of what it calls “dubious” roof claims.
News 6 has been telling you about unscrupulous roofing companies that offer “free” roofs, and even flood neighborhoods with salesmen after a storm to drum up business. The unethical roofers then hire lawyers, to sue the insurance companies.
First Floridian said it is paying out more just to try and avoid legal fees.
Gov. Ron DeSantis in Miami today again promised that lawmakers in Tallahassee will tackle the property insurance crisis next week during a special session.
“And I think this will be the most significant reforms that we’ve seen with Florida’s property insurance market in decades,” DeSantis said. “And this is a problem that has festered for a long, long time. At the end of the day, we have about 8% of the insurance claims for homeowners nationwide. The state represents 78% of all the litigation nationwide with homeowners’ policies, and so the incentives are skewed. And it’s not serving the interests of folks who are seeing these major premium hikes that are happening. So we’re going to address, there’s going to be a whole host of things that are going to be done. I think we’ve got broad agreement on most of it. There are a couple other things that we’re working with them on, but it’ll be a significant package. And we’re not going to accept anything less than a very significant package for the people in Florida.”
Public comment may be emailed to ratehearings@floir.com with the subject line “Florida Farm Bureau” through May 31.
The Office of Insurance Regulation said it will make a decision on the rate hike proposals after public comment period closes.