The state is approaching the hurricane season’s statistical peak very soon and property policies remain comparatively reasonable.
Next Wednesday, on September 10, the hurricane season will has reached its peak, and so far, Florida has managed to make its way through another year without being affected by any serious storms, and this good luck has had a highly positive impact on the cost of homeowners insurance in the state.
This was not the case when Hurricane Andrew struck the state and left devastation behind 22 years ago.
That storm altered the way that Florida perceived the threat associated with hurricanes, as it was left cleaning up after one of the biggest natural disasters to be faced in American history. Among the many industries to be affected by that event in 1992 was in coverage, as property and homeowners insurance premiums spiked and continued to climb in order to help insurers to prepare themselves in case another catastrophic storm should happen.
Florida homeowners insurance premiums had been climbing at an astounding rate over the years.
It was in that year that the Florida Legislature passed a number of laws in order to help to tackle the threats that came into the spotlight in Andrew’s wake. While some of the measures that were put into place accomplished absolutely nothing, others managed to be greatly helpful, and some ended up being quite harmful to the property insurance industry in the state.
In the years that came afterword, the Legislature continued to adjust the measures in order to try to address the issues that had arisen during that time and to repair the laws that were found to be harmful or at least not helpful. This was not an easy task and it required about 10 years to stabilize things. It brought the Florida property insurance market to the point that it was able to manage despite the fact that 2004 through 2005 saw the landfall of eight hurricanes.
More homeowners insurance legislation was passed over the years, bringing about considerable problems with the affordability of coverage, which made things worse before they finally seem to have made things better.