Increase Home insurance Rates but Less Coverage Expected…Just Great

Home insurance premiums for Floridians are set to rise but the fear is that with this increase will come less coverage. Not exactly what people in Florida need right now after being one of the most affected state during this economic collapse in the US.

The Associated Press reported that Florida state regulators approved nearly $718 million in rate increases, even though the state has been hurricane free for 5 years.

“Five years without a hurricane have caused memories of our eight-storm, two-year nightmare to become distant while non-hurricane pressures have weakened the property insurance market,” said Sam Miller, executive vice president of the Florida Insurance Council. “Many insurers are losing money and not building the surplus they should build during calm storm seasons, surplus to pay claims when the inevitable big one does strike again.”

Nine counties, including Sarasota, are beset by high cancellation rates. And reports from agents and underwriting notices filed with state regulators show property insurers are increasingly selective about the customers they accept, turning away all but the safest and most profitable customers — in effect, cherry-picking.

Homeowners “become agitated when they have insurance with the ‘less desirable’ companies,” said Sarasota insurance agent Rick Greene, “but ultimately, what is their option?”

All and all Home insurance is not the best topic of conversation to have to start the new year

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