Despite the fact that no hurricane made any significant damage over the state of Florida for seven years, property insurance is getting more and more expensive.
According to FloridaToday.com, the average Florida businessman or homeowner is paying almost 100% more than six years ago and, in some districts, the growth is even more serious.
One of the most significant players of Florida insurance market is Citizens, well-known Florida property Insurance Corporation, founded in 2002. According to the information on its official website www.citizensfla.com, there are more than 1 million of customers – it is significant number for state’s market.
However, many of its customers are getting the idea of changing their insurer on private companies. The reason for this moving is Citizens’ statement to increase premium on all its products on 16.4 percent in 2013. According to Mr. John Rollins whose words are published on the FloridaToday.com:
The insurance market in Florida is weak competitive – too few actors in order to provide customers with wide choice. Probably, customers’ desire to change insurer will accelerate market’s growth that will lead to lower prices and better quality of insurance services.
Based on the data from the Insurance Information Institute (placed in New York), it is possible to maintain that the majority of homeowners’ cases are due to claims involving water. The actual reasons vary from toilets’ and water heaters’ leaks to sinkholes, but still water is the main cause of insurance cases in Florida.
Moreover, Local 15 Channel claims that there are some market reason for increases in insurance rates – additional litigations and a growth in the number of commercial adjusters. This source also notices that favorable actions from Florida insurance regulators influence on the increase of rates.