Floridians are bracing for additional rate hikes as they are already paying higher monthly payments than homeowners in other states.
Property insurance rates in Florida are predicted to jump at least 40 percent in 2023, according to the Insurance Information Institute.
Mark Friedlander, the institute’s director of communications, said these increases come as Floridians are already paying more than homeowners in other states.
“Right now, Floridians pay arguably the highest average premium in the U.S.,” he said.
Friedlander said the average Florida homeowner is paying $4,231 for their property insurance, which is nearly triple the national rate of $1,544.
The growing cost of catastrophes has led to increased rates across the country. In Florida, the roughly $60 billion in insured losses from Hurricane Ian and the fact many insurers have left the state have caused property insurance rates to increase.
In February, Tampa-based United Property & Casualty Insurance Co. was the seventh private insurer to face insolvency in Florida. Of the roughly 135,000 policies with UPC, Friedlander said it’s estimated there’s around 20,000 outstanding claims from Hurricane Ian.
The state-backed Citizens Property Insurance Corp. absorbs policies that are dropped by private insurers. It is predicted to hit a record of 2 million policies in 2023.
“So, it’s a really bad situation for so many Florida homeowners right now,” he said.
The reporter saying that homeowners “wouldn’t see light at the end of the tunnel” while holding a flashlight was physically painful.