This week’s 2024 Florida Chamber Annual Insurance Summit revealed positive news for the state’s insurance market. Experts at the conference reported that home insurance rates have stabilized with an average rate increase for homeowners of only 0.8%. Florida Insurance Commissioner Michael Yaworsky highlighted that the true average homeowners insurance cost is around $3,600, showing stability compared to previous years of exponential growth.
The summit also addressed the challenges faced by the state’s insurance market, including unrelenting storms, underfunded insurance companies, and a high number of lawsuits. The Florida Office of Insurance Regulation noted that Florida accounts for 9% of the nation’s claims but 79% of homeowners insurance lawsuits. Yaworsky emphasized that reforms are in place and are beginning to have a positive impact, promising that the office will investigate any issues raised by homeowners.
Despite the fact that 75% of Floridians live near coastal areas, experts reported that catastrophic claims are down, attributing this to homes being built up to hurricane standards. Executive Vice President of Florida’s Chamber of Commerce, Frank Walker, explained that structures built to recent hurricane codes have fared better in recent storms. Insurance broker Michael Dehlinger highlighted the positive impact of Governor’s insurance reform efforts, which have reduced lawsuits and led to more homeowners finding coverage in the private market rather than through Citizens.
Overall, the insurance industry in Florida is showing signs of improvement, with more insurance companies entering the marketplace and reforms working to benefit homeowners and insurance brokers. Florida ranks as the ninth largest insurance market in the country.
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