Florida’s homeowners insurance market may be calming down
The homeowners insurance market in Florida is notorious throughout the U.S. for being somewhat volatile and unstable. The state is considered a very high risk zone to the homeowners insurance sector and has regularly fallen victim to natural disasters in the past. These disasters have created a sense of unease among homeowners insurance companies, many of whom are unwilling to do business in some parts of the state. There are signs that the homeowners insurance market is finally starting to stabilize, however.
Report highlights trends in the insurance sector
The Florida Office of Insurance Regulation has released a new report concerning the state of the homeowners insurance market. The report makes note of the measures the state has taken to solve some of the problems associated with Citizens Property Insurance. The state-run organization represents the vast majority of the homeowners insurance policies in the state and has faced monumental financial troubles for the past several years. The report suggests that some of the measures lawmakers have taken, such as depopulating the state-run organization, have helped keep insurance rates relatively stable.
Regulators claim rates are growing at a modest pace
The report shows that the Office of Insurance Regulation approved more than 100 rate increase proposals since 2009. Many of these proposals sought to raise rates by double-digit figures and had been criticized due to the financial burden they would place on policyholders. Despite the number of rate increases being seen throughout the market, regulators suggest that rates are growing at a very modest pace.
Insurance companies still uneasy of Floridian market
Natural disasters continue to be a very strong detractor in the homeowners insurance market. Private companies have not become more comfortable with doing business along the Florida coast due to the potential impact of hurricanes. Florida has not been the victim of any major hurricane for the past several years, however, but many insurers suggest that it is simply a matter of time before such a disaster hits the state.