Florida homeowners now paying more for insurance than for their homes
One of the highest expenses facing Florida families has long been the mortgage on their homes. Mortgages in the state, just as elsewhere throughout the U.S., put a large amount of financial pressure on families. While mortgages have been the highest expense for many families in the state, these families are beginning to pay more for their homeowners insurance coverage, according to the Insurance Information Institute. The non-profit organization suggests that consumers are paying more for their homeowners, auto, health, and life insurance than they are for the mortgage on their homes. In some cases, these insurance costs can be as high as $15,000 a year.
Florida is home to high homeowners insurance costs across the board
Florida has long been home to high insurance rates in several sectors. The Insurance Information Institute (III) notes that the state is home to some of the highest auto insurance rates in the country. A recent study from the Kaiser Family Foundation found that health insurance in Florida for those under the age of 65 is among the most costly in the country. There are several factors that contribute to the cost of insurance coverage in the state, but four of these factors have an impact on all forms of insurance.
Natural disasters, fraud, and politics contribute to high insurance costs
Florida is particularly exposed to hurricanes, which can cause damage to properties and vehicles as well as people. Though the state has not fallen victim to a major hurricane in several years, the risk of such a disaster visiting the state is still enough to influence homeowners insurance rates. A growing population is also having some effect on home insurance rates as companies attempt to accommodate the evolving needs of the state market. Prolific insurance fraud and political volatility are also contributing to high insurance costs.
More could be done to mitigate rising homeowners insurance costs
In the case of fraud and politics, the Insurance Information Institute suggests that more can be done to mitigate the costs of insurance coverage. Laws that punish insurance fraud more sternly could help lower rates for some form of coverage, namely auto insurance. Politicians have also been working to address the issues of the state-run Citizens Property Insurance group, which has been the subject of scandal recently due to allegations of corporate misconduct. Lawmakers could address many of the concerns that consumers have regarding the state-run insurer in order to help bring some stability to an already volatile market.