Florida Carriers Seek Staggering Rate Increases Amid Market Turmoil

By | February 25, 2020

  • February 25, 2020 at 1:29 pm
    Jack says:
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    Either let them raise rates or they will exit the market. Then you will get really high rates from surplus lines markets. The rates are headed up, way up here in SC. Consumers better hope it doesn’t get back to 2006 rates or the real estate market will take a hit.

    • February 25, 2020 at 2:32 pm
      Andrew says:
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      Yup. Is the average cost of Homeowners coverage more, less or about the same as the the average cost of Auto insurance in SC?

    • February 25, 2020 at 2:54 pm
      retired risk manager says:
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      Jack: You missed one key point. At some point, all companies have to reinsure. At some level, the reinsurance markets will say NO MORE. Then what?

      • February 25, 2020 at 4:07 pm
        SWFL Agent says:
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        The article mentions the “loss creep” from hurricane Irma but really does’t go into much detail. This has been a huge problem in SWFL and we still average about 1 roof claim per week even though Irma was 2017. At least three (3) roofers per day run ads in the newspaper advertising “storm damage” and we’ve seen estimates that exceed $100k for new tile roof installation on a 2100 sqft home. The reinsurance carriers are on the hook for these claims and it will be difficult years ahead for those companies that have a strong reliance on reinsurance.

    • March 2, 2020 at 2:40 pm
      JaxAgent says:
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      Hey Jack,
      I recently helped place my brother’s HO policy (frame/ $1.5M/ couple of miles NW of Beaufort) and we got it done through Vault. They did a nice job & beat Auto Owners pretty handedly.

  • February 26, 2020 at 4:08 pm
    Florida Consumer says:
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    What about State Farm? They are second largest carrier and they just reduced their rates by 14.4% which would seem to indicate they are making money. And Universal, the largest carrier, which had a 24% ROI in 2018 and 25% in the first half of 2019. They are making money as fast as they can count it. Why are these two companies so successful in Florida while these other losers whine about AOBs?

    • February 26, 2020 at 8:54 pm
      okt0ber says:
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      State Farm’s rates were extremely high before they adjusted them.

    • February 27, 2020 at 10:43 am
      Actuary says:
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      Universal writes a significant amount of business in the tri-county area and charges huge wind premiums to cover the risk. Since SE Florida has avoided any real hurricane damage recently, that wind premium can subsidize non-hurricane losses and hide the issue.

    • February 28, 2020 at 7:10 am
      CL PM says:
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      FC – In this industry, one-year, two-year and even three-year ROIs are not a meaningful statistic. Homeowner companies in FL need non-hurricane years to yield ROIs of 25%+ because in a hurricane year, the ROI will be -50%. To get a true picture of profitability in Florida, look at 10-year ROIs.

      • March 1, 2020 at 7:37 pm
        Mr. Solvent says:
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        Universal has been consistently profitable for years.

    • March 2, 2020 at 2:37 pm
      JaxAgent says:
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      AOB was a scam that was well worth ‘whining’ about. You should do a little more reading before you launch a scud like your post. It ain’t a good look for you.

  • February 27, 2020 at 3:09 pm
    Artie Makris says:
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    Amy,
    Are we able to connect on this article? VIP Software can help the carriers with this ongoing issue. Can we connect?

    Artie

  • March 2, 2020 at 1:28 pm
    Pete says:
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    Insurance abuse in the end affects everyone. Insurance companies should have been more aggressive in dealing with water damage losses. Complacency got them to be the funding arm for legal abuses. The constant barrage of tv ads by attorneys such as: Dan Newlin got me $xxx,xxx or Morgan & Morgan ads stating – you might have a claim, but don’t worry it will not cost you anything, insurance could pay for it. Yea, Well who pays for insurance? The consumer! At some point insurance companies must pass those costs onto consumers due to excessive losses. Well right now, we the consumer will see the effects of those excessive losses and that: Hey don’t worry insurance will pay for it!

    • March 4, 2020 at 2:01 pm
      Victor says:
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      100% I have been in the biz for over 20 years. I was warning marketers 10 years ago about them just paying claims. They said it was easier and cheaper, but now it is biting them in the butt. The state has to get the multipliers taken care of, I know the AOB issue is a lesser issue, but still there. I also stopped writing biz with carriers who had sloppy claim control. BTW two of those carriers are gone.

      I use to hate the a certain carrier’s in house model, but in today’s world, I like it. They control the claim from moment one to the end. All these carriers need to make sure they know who is working on the claim and control it. Right now, you have contractors knocking on doors asking who their carrier is. They know who the pushovers are and the companies they do not want to deal with. Carriers really need to become the latter.

      We are going to see more carriers start limiting coverages like water, non renew due to roof age, and so on. I still do not understand why ACV is not being used on a HO3 for roofs. I know the HO3 has it in the policy, but the policy needs to change. In fact, one carrier puts ACV on a roof older than 10. I think in all the time I have been in the business, even with Charlie, this is the worst I have seen it. Rates going up does not help an agency. You are going to be shopping, cutting different coverages, losing business to nationwide carriers, and overall stress of all the non renewals. Agencies are not set up to keep rewriting personal lines because of non renewals.

  • March 27, 2020 at 4:15 pm
    Berle Hopkins says:
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    My home insurance carrier increase their rates 36% over 2019. My agent ran a quote to include over 20 different insurance companies. All carriers had raised their rates to unbelievable levels. How can the Florida Insurance commissioners justify granting such increase in a recession and total shutdown of businesses due to current crisis? The DOJ needs to cite every carrier for price gouging by increasing prices of goods or services to a level much higher than is considered reasonable or fair. The attorney general should investigate the Florida Insurance Commission. Something is rotten in Tallahassee.

  • July 3, 2020 at 12:47 pm
    Arthur the Consumer says:
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    Most agents have no idea how to adjust a claim or for that matter, what TRULY is covered by the policies they sell. In fact, most agents have NEVER read policy from back to front and any nothing about how to find coverage in a policy.

    As such, the greatest of all FRAUDS is perpetrated by the insurance companies themselves. Carriers provide a product which is then sold by insurance agents. Both agents and insurance companies conspire to keep the consumer from filing claims by scarring them about insurance rates going up and the damages to their property being below their deductible.

    Then, if the consumer is lucky enough to file the claim, the carrier will systemically low ball the consumer, (by way shortcutting their customary repair procedures) or they deny the claim in part or whole because they know full well that most consumers buy into the whole LIKE A GOOD NEIGHBOR, YOU’RE IN GOOD HANDS, WE ARE ON YOUR SIDE, bullshit statements used to brainwash the consumer and to take their hard-earned money and when they really need the help from the carrier, the consumer is made to feel as if they are stealing from the carriers.

  • July 4, 2020 at 8:25 am
    jt says:
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    I’d be happy with a 15% increase my moms went up 38.2% after 27% last year so $1000 to $1824 in 2 years mine is even worse I got a 52% this year from $997 to $1542 since Oct 2015 till June 2020 mine has tripled. I don’t understand how Florida can allow that kind of increase knowing how large of a % of the population is seniors on a fixed income.

  • July 27, 2020 at 9:18 am
    Pat ward says:
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    Ours went from 2400 to 4900. 1500 sq ft ranch home on Amelia Island, FL. Heritage Insurance. We bought the home in June of 2019.

  • September 12, 2020 at 2:48 pm
    Lauren Hallahan says:
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    Maybe if our system of justice began to prosecute fraud…in any form…like lying about water damage…soaking baseboards for new kitchen. Well it hit the bottom cabinets. All over Fla I know people who all have new kitchens from some stupid sink leak.

    Then there are credit cards. We had one skimmed and were given ‘life lock’ for two years for free. During that time we got a call to see if we were purchasing a VCR in NYC. Nope…having dinner in Central Fla. They just tell them they cannot purchase the items and they leave the store! No calling the police…no bother…just don’t let them buy it and they think that takes care of the ‘monetary’ problem. However after two years, they want ME to pay 250.00 a year to protect me being accountable for others stealing and getting away with it. I did not, will not purchase it.

    Now they are filing false mortgage deeds of paid off homes to steal them. Eight On Your Side just did a story, showing the bank cannot help you…they got a deed and transferred it legally, they didn’t know so they are off the hook. This is going on around the country, a new scam to falsify a home deed and steal the home. So now they have come up with a product to purchase to protect your deed. No accountability for stupid admins who don’t do a thorough search. But we should pay to stop the skimmers. They all go free and many are able to keep the stolen houses. Just look this new scam up. So…our country needs to start prosecuting crime and stop putting those costs onto us…as we are able to be criminally assaulted. Prosecutions costs money, and this IS underfunded law enforcement. So we pay privately on credit cards for ‘shields’ and homeowner deed protection. Just another product to sell. If my card is used, I don’t have to pay for the items. So why pay for the shield to get a call someone else is using it criminally? You will get the bill and then dispute it. The bank still pays the bill. But you don’t have too. The shield protects the bank cards from paying! All good….but no prosecution of criminals. Back to criminal acting homeowners…..I’m going to pay off my home and just cancel the ins…and use the HELOC to do projects….keeping a lean holder on the deed. So what I pay for is mine…like a new sofa…not a business product because our country no longer seems to prosecute any type of FRAUD!

    • September 14, 2020 at 2:06 pm
      Gadzooks says:
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      Fraud will never be prosecuted at the extent it needs to be due to the lack of courage of legal counsels for insurers. They are simply afraid to be faced with a “bad faith” suit. Companies have investigation units, that find and verify the fraudulent activity, but when they present it to management, managers balk and agree to pay as a “claims management decision”. I have been at 5 companies in my 20+ year career and it is the same at all of them. Some or are far worse, but most for the better part will decide to pay a claim than possibly get bad publicity or a bad faith claim suit. Insurance fraud is at a level so high that the average person would freak out if they knew. 30% – 50% of all claims have some fraud in them. Lawmakers are often lawyers, and they often keep an affiliation with a law firm that pays them a lot. SO would you be shocked to learn that every politician in FL is somehow connected to crap law firms. Do your research. Start with Charlie Crist. Google it.

  • September 28, 2020 at 12:07 pm
    Marietta says:
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    I am 77yrs old have lived in my home since 1984 my Homeowners ins went up $1,100.
    Who or what Department in the State of Fl. Gives them the right to raise the rates is it
    The Attorney General or The Fl. Office of Ins. Regulations or there Board or has that
    Been Deregulated if it’s been Deregulated Does everyone in the State Who has a mortgage
    Or Owns a home just sit here do nothing or Pay the Premium I do not know how to find the
    Answers to my questions However if HOMEOWNERS INSURANCE IN THE STATE OF FLORIDA HAS BEEN DEREGULATED YOU MAY WANT TO RE-THINK HOW YOU VOTE

  • February 23, 2021 at 8:20 am
    Nathan Williams says:
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    I see my comment was removed. My Homeowner insurance went up 50%. I am in the process of possible losing my home of twenty years. This is unfair. The fraud, maybe an insurance adjuster should be doing their jobs, and checking the claim by roofer before paying the claim. I had a roof put on two years ago. I paid out of pocket. This is unfair, we the law abiding citizens have to pay for this. Where is all the money these blood suckers have been collecting form me for 35 years. First and second home. I forgot the CEO’s are getting their 2,3 , and 5 million dollar a year pay checks like most large businesses. These CEO’s do not do the work, the little people do, and get paid little. The insurance increase in Florida is unfair, and uncalled for. We ARE NOT California, we do not make the money they do. Insurance Company’s homeowners, and Motor vehicle insurance is a BIG RACKET, Blood Suckers. Contact the Govenor please everyone. Unless we stand up against them, nothing will charge, except high and high charges. I have never filed a claim. Yet, I have to Pay For The FRAUD, the insurance company’s aloud to happen and not send an adjuster to check. UNFAIR, SHAME ON THE GOVENOR and State GOVERNMENT, SAHME, SHAME on you.

  • February 25, 2021 at 7:10 am
    Nathan Williams says:
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    This State has some major issues. Until the people stand up. The insurance company’s will continue sucking we the citizens down to our last dollar. I didn’t tell people to live on the coastline, on the beaches, i did not comet fraud for a new roof. Go after the ones the filed false claims. I’m sick of paying for people that get everything free, when we the hard works have to pay for it. It shames me to say i live in Florida. I wish i had the means to move. Im stuck, and being taxed and charged for insurance, right out of my home. SHAME ON THE GOVENOR, SHAME, Shame Shame on you. Insurance is a BIG Racket. Give me the money back i’ve been paying for the last 30 years, with no claims. BLOOD SUCKER. They should no be able to get a way with this. This FRAUD to the Good people of Florida. SHAME, SHAME on the Government of Florida.

  • March 8, 2021 at 11:44 am
    Nathan Williams says:
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    HOW MUCH longer are the Insurance Company’s going to allow this to continue. False claims for hail damage for roofs and water damage. These roofing company’s are committing Fraud. And its continuing to go on, and The Insurance company’s are doing NOTHING. Five houses on my street already in the past 6 months, they all let the roofing company file as hail damage, WHAT HAIL, WE HAVENT HAD ANY. These houses are 20 years old. I PAID OUT OF POCKET, for my roof. i did the right thing. These roofer are going around and telling people they can get a new Roof Free Of Charge. SHAME SHHAME ON these company’s and our State GOVERNMENT for letting this happen. Now all of us are paying for the Insurance company’s BULL CRAP. UNFAIR, Go after the ones the insurance company’s paid for new roof. Not the people have not filed claims. They need to held accountable for their FRAUD. Not us that do the right thing. UNFAIR, UNFAIR, UNFAIR. BLOOD SUCKING INSURANCE. Give me back the money you have been collecting from me sense 1994. For NO CLAIMS SUBMITTED. Let see how far that goes!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!



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