Homeowners Continue to See Dramatic Property Rate Increases Due to False Lawsuits
Florida homeowners insurance increases despite reforms passed in 2021. This rise is due to the dishonest taking advantage of insurance policies. These are businesses whose model is to capitalize on consumers’ coverage. They file false home insurance claims that affect us all.
Below is an infographic that helps explain the rise in rates:
Unethical construction, roofing, and legal professionals are at fault. They use abusive tactics to manipulate the claims process to their benefit. As a result, the insurance industry is losing billions of dollars to lawsuits. In the first three quarters of 2021, property insurers had $1.22 billion in coverage losses. This means homeowners insurance increases across the state.
What does this have to do with your homeowners insurance rates going up? Everything.
Here are some facts:
- In 2020 Florida’s homeowners paid $651 more than people in nearby states. The projected number in 2022 is $866.
- In 2019 Florida opened only 8.15% of all U.S. homeowner claims. Yet, Florida accounted for more than 76 percent of property claim lawsuits in the U.S.
- Between 2013 and 2020, Florida’s insurers paid out fifteen billion in claims costs. Attorneys received 71% and consumers received only 8%.
“The cost of bad actors and third parties filing false or inflated insurance claims is passed along to all of us.”
Insurance Consumer Advocate
If you can’t afford a home insurance increase, then NOW is the time to tell your elected officials to ACT. Say “No” to homeowners insurance increases in Florida.
Contact your insurance representative for more info
Contact our office today to speak to a knowledgeable insurance representative. Caton Hosey can make recommendations to help suit your needs.
Florida Association of Insurance Agents Here’s Why Home Insurance Rates Are Skyrocketing in Florida PDF (www.faia.com)