Home Insurance Rates Skyrocket in Florida

Home Insurance Rates Skyrocket in Florida

March 18, 2022
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Despite legislative reforms passed during the 2021 Legislative Session, Florida’s homeowners have continued to see dramatic property rate increases. At the same time, the insurance industry is losing billions to unnecessary lawsuits from third-party contractors. In the first three quarters of 2021, financial results show that property insurers had $1.22 billion in underwriting losses.1

Florida’s insurance marketplace has been plagued by unscrupulous cottage industries whose business model is capitalizing on consumers' insurance policies. Bad actors in the construction, roofing, public  adjusting, and legal industries have used abusive solicitation and marketing tactics to manipulate the claims process for their benefit.

Only 8.15% of all U.S. homeowner claims were opened in Florida in 2019. Yet, Florida accounted for more than 76 percent of property claim lawsuits in the U.S.2

Between 2013 and 2020, Florida’s property insurers paid out fifteen billion in claims costs. Only eight percent of that was paid to consumers, while 71% was paid to attorneys.3

In 2020, Florida’s homeowners paid $651 more than people in nearby states like Georgia and Alabama. This year, that gap is projected to grow to $866.

"The cost of bad actors and third parties filing false or inflated insurance claims is passed along to all of us."

Tasha Carter
Insurance Consumer Advocate

If you’re one of the thousands of homeowners in Florida who can’t afford property insurance increases, NOW is the time to tell your elected officials to ACT.

1. Guy Carpenter Industry Financial Reporting
2. National Association of Insurance Commissioners (NAIC)
Market Conduct Annual Survey (MCAS) Report
3. Florida's P&C Insurance Market: Spiraling Towards Collapse