Despite the lack of natural disasters, it is still becoming more expensive to keep property coverage.
Even though there was a striking lack in major catastrophes due to storms such as hurricanes, in 2012, the premiums associated with homeowners insurance policies in Florida are continuing to rise.
The prices for some customers are increasing by a considerable amount across the sector.
This trend is lead by the state backed homeowners insurance company of last resort, Citizens. This company has already had its premiums increase proposals approved, and other companies have followed suit. For many people, this has made the coverage very difficult to afford. This has been made larger by some of the inspections that have been performed by Citizens Property Insurance Corp.
Some homeowners insurance customers have seen premiums rise by 45 percent or more following inspections.
That said, an increase of that size is not typical of the changes that have been made to the homeowners insurance prices as of late. Unfortunately, thousands of property owners in the state feel that they have no choice but to choose Citizens, a company that is making significant efforts to try to make itself less appealing to consumers so that they will choose an insurer in the private sector.
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This is because Citizens is in desperate need of downsizing. The inspections are only one part of this process, but the premiums increases are another. This is causing the price for property owners to soar, despite the fact that there hasn’t been a major hurricane that has struck the state in seven years. Equally, though, insurance industry statistics show that policyholders are paying approximately twice the premiums that they had faced six years ago. In some parts of the state, this increase is even higher than that.
The Insurance Information Institute (III) has revealed that claims on homeowners insurance policies have increased by approximately 17 percent over where they were ten years ago. Nearly all of them are due to water damage that is unrelated to catastrophes. Often, they have to do with burst water heaters and leaky toilets. Insured sinkhole losses in the state have also been considerable.