Florida Insurance Carriers Are Seeking “Massive” Rate Increases. Is Your Insurer On the List?

The Loss Recovery Law Group, PL.

Florida property insurance companies have been seeking substantial rate increases over the past few months. Their requested rate filings with the Florida Office of Insurance Regulation have ranged from 20 to 40 percent in what could be the resulting policy increases, Insurance Journal’s Amy O’Connor reports here.

Those requested increases have been based on the typically cited issues of Assignment of Benefits (AOB), water damage claims and “loss creep.” 

But could the recent Coronavirus outbreak on the other side of the world actually result in your homeowners insurance rates spiking even higher?

Reinsurance, which is essentially defined as the insurance for insurance companies, could quickly become more expensive partially because of virus-related market fallout.  Because reinsurance is largely unregulated, reinsurers can charge insurance companies whatever rates they want.  That cost is inevitably passed along to consumers. 

Particularly susceptible to reinsurance rates are the smaller Florida insurers, especially after weathering several seasons of depleting loss reserves.  AM Best expects reinsurance rates to increase by 15 to 20 percent this year, Insurance Journal also reported.