By The news of the skyrocketing state of Florida’s Homeowners Insurance claims has been ages. Although the Florida State legislature approved changes to the laws of Florida home insurance laws that are designed to keep insurance companies operating in the state in, the positive feedback is yet to be testified.
Florida has instituted a series of reforms to increase consumer choice and accountability in the insurance market.
The Florida Governor, Ron DeSantis has signed several bills into law with the effort of reinforcing commitment to Florida policyholders by investing in hazard mitigation programs and instituting a series of accountability measures that protect consumers from predatory insurer practices.
Key Changes Made to avert Florida Home Insurance insecurities
1 Prohibition on denying coverage based on roof age: This policy no longer permits Insurance companies to deny coverage solely based on roof age if the roof is fewer than 15 years old and has a life expectancy of five years at the time the policy is issued.
2 My Safe Florida Home Program: This program provides grants to help Florida homeowners strengthen their homes against damage or any natural disaster which is quite rampant.
3 Restrictions on lawyers’ fees: Lawyers will be restricted in their charging rate for property insurance claims cases. This is instituted to help discourage fraudulent lawsuits and decrease litigation costs.
4 Elimination of one-way attorney fees: The state of Florida will no longer be operating a one-way attorney fee system, which required insurance companies to pay the plaintiff’s attorney fees when they lost a case.
5 Assignment of benefits reform: Assignment of benefits forms are banned totally for home insurance losses to help reduce unwarranted claims.
These changes are in connection to stabilizing the home insurance market in Florida, which experiences high rates of fraudulent claims and lawsuits.
Charles Nyce, a professor at the Florida State University College of Business specializing in catastrophic-risk financing and corporate-risk management, has given the hope that the measures introduced by State legislators could possibly ease the Florida insurance crisis. However, he reflected that there is a likelihood of the issue getting worse before it gets better.
Nyce believes there are no easy fixes to the situation and that the measures (that the state has introduced) obviously will not turn the market around quickly.
So with this, which insurance company has the capacity to withstand this catastrophic era of insurance in Florida? Lets analyze four no of them.
Property Insurance Companies who are still standing out
1 State Farm: According to Market Watch Guide, State Farm tops the companies that have the capacity last for Floridians. It is suitable for Florida homeowners who recently purchased a property. The company offers several resourceful online guides that make it easy to understand essential policy details and other policy-related information.
2 Allstate: Allstate is great for homeowners who wish to expand their insurance coverage. They offer several endorsements as add-on protection with the best discount.
3 Security First: Security First operates only in Florida and it is dedicated to providing protection against disasters that are prevalent in the Sunshine State, such as hurricanes and flooding. Security First carries an A+ rating from the Better Business Bureau (BBB) and an A rating for financial strength from Demotech. Additionally, the company’s exclusive service in Florida allows it to tailor home insurance coverage to Florida residents and provide them with dedicated local customer service
4 Progressive: Progressive makes it convenient for homeowners in Florida to buy multiple insurance policies. This gives you the desired bundle when getting an online quote. You can also save up to 7% on a home and auto insurance bundle each month. In addition, Progressive has other discounts to help lower your premium.
5 Chubb: Chubb perhaps appeals to owners of high-value properties because it offers comprehensive protection and complementary services. The company has an A++ rating from AM Best, which indicates it’s timely settling of claims.
In a nutshell, the homeowners insurance nature and it’s consequences had put pressure on many companies to move from Florida. But there are others who are working and hoping things turn around with the help of the state law mechanisms Governor Ron DeSantis and the state has been implementing.
