Here’s an overview of why homeowners insurance costs are rising in FL.
A month or so ago, I was having a conversation with Danny Sands, owner of Brightway Insurance, who told me that homeowners insurance rates were about to go up. That was the first time I had heard such news, so it didn’t quite sink in then. Sure enough, though, I soon started seeing articles in real estate publications about the coming insurance rate climb, so I’ve invited Danny to chat publicly about the problem and discuss potential solutions for homeowners. Unfortunately, as Danny explains, it’s not just one issue affecting the homeowners insurance market here in Florida—it’s a multi-headed beast.
Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to skip to topics that interest you most:
1:04 — What is “reinsurance,” and why are reinsurance costs a big part of the problem?
2:03 — Legal issues exclusive to Florida (the only state that allows multipliers for attorney fees)
3:48 — Roof claims are forcing insurance companies to make tough business decisions
5:25 — Pro tip: Work with a savvy agent and stay up to date on your roof and water heater
6:11 — The importance of reassessing your dwelling coverage to avoid being overinsured
7:18 — Citizens Property Insurance: the company of last resort created by the state of Florida
8:50 — Wrapping up today’s discussion with Danny’s insurance forecast
News of rising insurance costs is obviously a huge buzzkill, but what else would we expect from 2020 at this point? Let’s just be thankful for our properties and the coverage we do have, and take the necessary steps to guard ourselves against a market in flux. I hope you found this update from Danny helpful; if you want to hear more from him on this topic, give him a ring at 904-999-3250. As always, you can give me a call or send an email with any real estate-related concerns or questions. We look forward to hearing from you.
