Hurricane Ian Will Cause Homeowners Insurance Rates To Skyrocket
It is no secret that areas in Florida, such as Tamarac, Pembroke Pines, and Pompano Beach, are prone to hurricanes and other natural disasters. Residents in Florida pay more for property insurance than anyone else in the country. Research states that Florida residents pay three times more than the national average for Homeowners insurance and condo insurance. And for years now, Property insurance premiums continue to rise. Florida residents Are experiencing a 9% increase each year. Now that Hurricane Ian hit landfall and caused immense damage, Florida residents worry that they will see a significant hike in insurance costs, and they have reason to worry because experts in the insurance industry are making the same predictions.
The Change in Climate Will Make Storms Similar to Ian a More Common Occurrence
As the climate continues to change, hurricanes and storms will be more commonplace, and these storms are also becoming more destructive. Florida’s property insurance market is made up of regional companies and Affiliates of national insurance companies. Because affiliates and regional companies are smaller than national insurers, they do not have the capital reserves that larger companies have, making regional companies and affiliates rely on reinsurance to pay claims during natural disasters. Because storms are becoming more destructive than in times past, Reinsurance costs are rising significantly, and this is because reinsurers are either leaving the market in Florida or charging higher rates to property owners. In Florida, Property owners can expect to pay at least 50% of their premiums for reinsurance.
Insurance Agents View This Hurricane to Be a Direct Hit
Although the storm did not damage every home in Florida, insurance agents in the area are viewing this hurricane as a direct hit to the insurance market. Though the storm has passed, insurance claims are still being made, and insurance companies are still paying for these claims. The state of Florida has faced historic losses, and insurance companies will increase their premiums to cover these losses.
What Will Be Done to Provide Relief to Homeowners?
Though property insurance rates are rising, there are still some things that homeowners can do to find relief. One common method that homeowners can utilize to get some relief from high insurance premiums is to bundle their insurance. Some companies will sell auto insurance and other types of Insurance In addition to homeowners’ policies. If homeowners purchase other insurance policies alongside their property insurance with the same company, they can expect to see up to a 15% Decrease in insurance premiums. Another way that homeowners reduce their insurance premiums is to ask for a higher deductible. The higher the deductible, the lower the premiums will be. Some homeowners have even gone as far as to make their homes more disaster resistant by adding storm shutters, reinforcing their roofs with stronger materials, and installing drainage systems to minimize flooding.
If you reside in Tamarac, Pembroke Pines, and Pompano Beach and need property insurance, contact ZK & Associates. We will consult with you to ensure you get the best rates, and we will provide suggestions on how to disaster-proof your home.