ORLANDO, Fla. – Barbara Leon is a homeowner in Apoka who has experienced rising insurance premiums. Like many people, she hopes it doesn’t get worse. She told News 6 reporter Laverne McGee, she remembers when the rates were low.
" Oh my gosh. Yes, absolutely," she said. “I have had a home here for nearly 40 years and I did not think rates would go this high. ”
But according to experts, Florida’s home insurance industry is getting better.
A Florida Senate panel heard positive remarks about the state’s insurance industry from some of the sector’s most important people.
The Senate Banking and Insurance Committee heard the presentation on the state of the industry Tuesday morning.
Mike Yaworsky, Florida Insurance Commissioner, said in the meeting, “We continue to see good news emerging as we go forward.”
“The average market cost for insurance in the state of Florida is about $3,700. That went up dramatically over the past several years. But over the past year and a half, it stabilized considerably following the reforms that have taken place,” Yaworsky said.
There are several factors for why homeowners' insurance rates have skyrocketed. Hurricanes, fraud claims, and inflation have contributed to rising premiums.
Right now everyone in the country is concerned about people losing their homes in those raging California wildfires.
“I was terrified I was going to get that question,” said Tim Cerio, executive director for Citizens Property Insurance Corporation. “We don’t know. We have asked our consultants.”
That situation could possibly end up affecting insurance rates here in Florida if it adversely affects the reinsurance market, which is how insurance companies manage risk and capital to provide protection.
The data used for Tuesday’s presentation was as of Jan. 4 of this year. That was just a few days before the California wildfires started.
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