Sticker Shock for Florida Property Rates
The Wall Street Journal reports that Insurance industry analysts and executives say that the market for property insurance in Florida is troubled, as the losses of the state’s insurers are increasing, and the higher premiums carriers are charging may dampen the state’s robust real estate market.
Industry observers attribute the difficulties in Florida's insurance market to a variety of factors, most significantly, the reinsurance costs stemming from $30 billion in losses from two recent hurricanes—Irma in 2017, and Michael the following year. Experts also express concerns about excessive litigation involving insurance claims, and the prevalence of fraud.
Barry Gilway, chief executive of Citizens Property Insurance Corp., said without change, ”rates will continue to skyrocket and it absolutely will have an impact on the real estate market.” According to the Triple-I, state homeowners are expected to have to pay an average premium of $2,380 this year, a 21 percent increase compared with the average premium of $1,960 in 2018.