In Florida Property Insurance, Hurricane season, Insurance Costs on February 22, 2013 at 1:32
Another hurricane season has come and gone, and Florida was fortunate to escape the wrath of the wind and rain. New York and New Jersey – not so much.
Nevertheless, Florida property insurance costs are still on the rise. It isn’t just hurricanes that cause rates to rise, although that seems to be what everyone in Florida thinks. Homeowner claims are up by more than 17 percent in just the last ten years, and many due to non-catastrophe claims. Interesting note – most involve water.
Also, abusive law suits and the idea of ‘finding money” by suing insurance companies (”Why not? They have deep pockets!”) make rates rise. We can’t control the weather. We can control fraud. At least we can try.
In Florida Property Insurance, Insurance Industry on February 8, 2013 at 1:32
The need for change in the insurance industry is an on-going battle. Recently the Florida Chamber of Commerce weighed in on the controversy.
A significant focus is on the coastal properties. According to a recent press release, Florida has more than $2.5 trillion in total insured coastal property value, which is the highest of any hurricane exposed state. The Chamber created a document to address the many concerns and offered some guideline solutions, among them reducing the risk of hurricane taxes, restoring the Florida Catastrophe Hurricane Fund to its original intent of supplementing private insurance, attracting new capital to the state, and – my particular favorite – reducing fraud and abuse.
The Chamber offers interesting ideas worth considering.