A severe hurricane hasn’t hit Florida since 2005, but residents are still paying the highest homeowners rates in the country.
According to statistics released Tuesday from the National Association of Insurance Commissioners, home insurance premiums average $2,115 in Florida. Not only is that the highest average in the country, but rates are actually up – Floridians paid a slightly lower $2,084 in 2014.
Comparatively, the state’s bills run close to twice the national average of $1.096.
Though insurance companies defend the higher rates, consumer advocates are speaking out against what they feel are disproportionate costs.
“The annual premium increases are not justified,” Nicole Vinson, a Tampa insurance attorney and head of Policyholders of Florida, told the Palm Beach Post. “In addition to paying more, policyholders are receiving less coverage than our neighboring states, even those on coastlines.”
Insurers, meanwhile, say attorneys, contractors and other parties have artificially inflated claims for things like plumbing leaks, which cause rates to increase even in non-hurricane years.
Others argue that the absence of hurricanes in the past 10 years does not preclude the possibility of their return.
“Florida has the highest property insurance rates because it has the nation’s highest insured catastrophe losses – and that remains true despite 10 storm-free years,” said Lynne McChristian, a Florida representative for the Insurance Information Institute.
McChristian pointed to Florida’s $68 billion in insured catastrophe losses during the period of 1985 to 2014.
And it isn’t just private insurers. Florida Lieutenant Governor Carlos Lopez-Cantera told a state Senate panel this year that state-run Citizens Property Insurance Corp. needed to raise rates in South Florida for the same reason.
“This is a growing problem,” he said. “There’s significant evidence this is leading to higher premiums.”
Vinson, however, says the idea of a “water claims crisis” is dubious.
“Sadly, I have to advise my clients not to be surprised premiums increase but the coverage is less than it was last year,” she said. “Floridians should pay close attention because the coverage for residential claims is being sliced and diced but the price tag is going up.”
Other states with high homeowners rates include Texas ($1,837) and Louisiana ($1,822).
