Did you know that Florida insurance carriers are facing a crisis? They are having to raise insurance rates to sustain their business and unfortunately there doesn’t seem to be any end in sight.
Over the past several years, insurers have consistently cited evidence of surplus litigation from non-catastrophe water damage losses across the state. While the country also experienced several major catastrophes, the business claims and severity of lawsuits on the above type of losses have been unprecedented.
These increases have put Florida insurance companies in a predicament where they just can't take on greater risk. Supposedly there are new underwriting guidelines by carriers, including limits on new businesses and homes, 2010 and newer, that are quite restrictive. Several carriers have advised their representatives that they will no longer accept any new company and instead will only quote renewals.
With rates spiking statewide and firms pulling back capability, many insurers have had no other option but to turn to a last resort, the people. Its prices are capped at a certain point, meaning that the firm can't increase them.
Hopefully, things will be getting better and Florida insurance companies will be able to put themselves on a sustainable path. Richard Dean Insurance does represent many carriers in the Florida market, so if you’re facing an increase, call us right away! Our team is standing by and ready to shop for the best option for you!