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Homeowners' Insurance Rates Florida

Rising Inflation: Another Factor Contributing to the Increase in Homeowners’ Insurance Rates in Florida

Aug 19, 2023

The confluence of events in Florida is creating chaos in the home insurance market. Insurance companies are struggling to stay in business, while homeowners are facing staggering increases in insurance rates, with fewer companies writing policies in the state.

To make matters even more difficult for residents, Florida homeowners are already paying four times the national average for premiums. Many long-time residents across the state are facing the reality that their homeowners insurance is no longer affordable and selling their homes may be the only choice. This is particularly difficult for those on fixed incomes or lower-income earning families.

The Weather

Climate change and Florida’s low elevation have contributed to increasing the vulnerability of major sectors of the population to storm surge damage. Over three-quarters of the state’s population lives on the coast, and the severe damage from Hurricane Ian in 2022 highlighted how significant storm surge damage can damage homes inland from coastal areas.

While the severity and frequency of hurricanes and tropical storms are a factor, they are not the only reason the rate of home insurance is increasing. Other factors, including inflation, are contributing to the very real challenges facing the state.

Rising Inflation

In addition to rising water levels, rising inflation directly impacts homeowners’ insurance rates. Individual homeowners throughout Florida received notices in 2021 and 2022 that saw their rates double. Homeowners today are seeing insurance rates increase by just under 90% over the last couple of years, and insurance companies are blaming this on the increased cost of replacing the home.

The cost of materials to rebuild homes throughout the United States has increased by 30% over the last five years. As reported by the International Insurance Society, this makes the USA the global leader in the increase to replace property.

Fourteen homeowners insurance companies throughout the state are currently in liquidation due to insolvency issues. Higher claims and replacement costs without offset rate increases combined with increased homeowner insurance lawsuits are indicated as the leading reasons for the failure of these companies. Inflation rates are another factor causing insurance companies to pass home insurance costs on to property owners in Florida.

If you are facing the loss of your homeowners’ insurance coverage in Hialeah Gardens, Margate, Homestead, Palmetto Bay, Cutler Bay, Hialeah Gardens, North Miami Beach, Coral Gables, Hialeah, Naples, and Miami, FL, talk to the team at Del Toro Insurance.

To talk with our expert insurance agents to discuss your coverage, call us at (305) 335-8676 or reach out to us online for more information. We serve clients throughout the Hialeah Gardens, Margate, Homestead, Palmetto Bay, Cutler Bay, Hialeah Gardens, North Miami Beach, Coral Gables, Hialeah, Naples, and Miami, FL, areas.



What are the main factors causing the rise in inflation in Florida?

Increases of up to 30% in the cost of replacing property combined with high housing and rental cost and high demand helps to drive inflation throughout Florida.

How does inflation affect the cost of building materials and labor, and subsequently impact homeowners’ insurance rates?

As the price of building materials and labor increases, the cost for insurance companies to replace damaged homes also increases. The homeowners’ insurance policies pass on this increase to individual customers.

How can homeowners in Florida prepare themselves financially for increasing homeowners’ insurance rates caused by rising inflation?

Homeowners can look at different policies and coverage levels, adjusting to keep their insurance rates within their budget. The agents at Del Toro Insurance can review the policy and coverage and make suggestions to help save you money.

Are there any alternative insurance options or strategies available for homeowners in Florida to mitigate the impact of rising rates due to inflation?

Reviewing insurance coverage and considering changes to coverage levels and deductibles can help to reduce overall rates. In addition, having a current wind mitigation inspection and making any necessary upgrades to the roof can help.

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