As Citizens Insurance tries to shed 100,000 policies, a local resident says he received a quote for a 430 percent rate increase, which would have gone into effect if he failed to opt out.
While a 430% increase is definitely highway robbery, the problem with home insurance in Florida is that it is basically uninsurable with all the problems coming with global warming.
It won’t be long until home insurance will be the biggest issue on a home owners bill, far surpassing any mortgage payments.
I honestly don’t understand what people expect the Florida government to do about rising insurance rates. Loss ratios are already regulated, so if underwriting says they need a 400% rate increase to maintain an acceptable loss ratio, that’s what it is.
A loss ratio is the ratio of claims paid versus premiums collected. Typically this is in the 95%+ range. This is why some auto insurers sent refunds at the beginning of covid. Less driving meant less claims, and a too-low loss ratio could get them into trouble with regulators.
It’s unfortunate that insurance expense is what’s displacing people, but the root cause is climate change.
Agree but the particular rates Slide is trying to change individuals are not reasonable. In the attached article they want the homeowner to pay 13,000 a year for probably $300k of coverage. It may be that the average rate is somehow ok but there is no way the $13k makes sense.
While a 430% increase is definitely highway robbery, the problem with home insurance in Florida is that it is basically uninsurable with all the problems coming with global warming.
It won’t be long until home insurance will be the biggest issue on a home owners bill, far surpassing any mortgage payments.
I honestly don’t understand what people expect the Florida government to do about rising insurance rates. Loss ratios are already regulated, so if underwriting says they need a 400% rate increase to maintain an acceptable loss ratio, that’s what it is.
A loss ratio is the ratio of claims paid versus premiums collected. Typically this is in the 95%+ range. This is why some auto insurers sent refunds at the beginning of covid. Less driving meant less claims, and a too-low loss ratio could get them into trouble with regulators.
It’s unfortunate that insurance expense is what’s displacing people, but the root cause is climate change.
Agree but the particular rates Slide is trying to change individuals are not reasonable. In the attached article they want the homeowner to pay 13,000 a year for probably $300k of coverage. It may be that the average rate is somehow ok but there is no way the $13k makes sense.