Florida House Insurance Walks: Why You May Pay Extra For The Similar Safety – WJXT News4JAX

JACKSONVILLE, Fla. – The sticker shock is a mild description of what Florida homeowners may experience after learning that they may have to pay to keep their homeowner insurance active for the next year.

The Office of Insurance Regulation reports that it has approved an insurance rate increase of up to 33%, and insurance experts say the industry as a whole is nearing a crisis.

Let's say your homeowner insurance is $ 4,400 a year. Through no fault of your own, you could be forced to pay an additional $ 1,450. According to Michael Carlson, CEO of the Personal Insurance Federation of Florida, there are some major problems in the insurance industry right now that seem to be getting worse.

"I fear that people on fixed incomes and people with limited resources just can't afford these increases and will be evicted from their homes," said Carlson.

According to Carlson, this isn't such a far-fetched scenario for some Florida homeowners. His nonprofit agency represents national property insurance companies, many of whom are struggling to keep up with rising spending.

The increasing amount of money insurance companies are paying to get insured is just one of the reasons the costs are passed on to homeowners. The other top reason the insurance rate increased: unscrupulous builders targeting neighborhoods knocking on doors asking if they can fix or replace your roof.

″ Sometimes roofs are replaced without damage. Sometimes roofs are damaged by unscrupulous contractors trying to make a claim. And sometimes roofs aren't even repaired by a contractor who hired the homeowner to do the repairs, ”said Carlson.

According to Carlson, this small group of unscrupulous actors in Florida has a significant impact on insurance tariffs. If they get into a dispute with an insurance company, Carlson says many of them will file a lawsuit to take advantage of the risk of paying legal fees.

“It's really unfortunate that payers are paying, and worse, people are not being renewed, and in parts of the state, especially along I-4, there are zip code areas where insurance companies are refusing to start new business on the Real estate area because the cost of claims and related litigation is so dramatic in these parts of the state that insurers don't believe they can actually do business in those areas, ”said Carlson.

Insurance experts say the trend in South Florida started moving up the Interstate 4 corridor and there is currently growing litigation in Duval County and across Northeast Florida. Carlson says lawmakers must act to protect homeowners from being forced to pay the bill.

“The business model for filing lawsuits is what we really need to target. We need to take away an incentive to get attorney fees from settlements from insurance companies that are driving these claims and lawsuits, ”said Carlson.

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