If approved, the proposed increases would take effect in early 2025. (iStock )
More bad news is on the way for Florida homeowners. Not only are insurance companies leaving the state, but Florida’s state-created Citizens Property Insurance is also We just voted to raise interest rates by 14%. Across the state.
The insurance company’s board of directors voted unanimously in early June. The 14% rate increase is dangerously close to the maximum rate increase allowed by the state. Homeowners should prepare for higher rates starting next year if the change officially goes into effect. At this point, this is only a recommended rate increase. Any official increase must be approved by the state’s Office of Insurance Regulation.
“The news today is about rate hikes,” board member Scott Thomas said at the meeting, “but the real news to me is that uncapped offering rates are much lower than they were just a year ago. That’s a phenomenal change.”
If approved, the tax changes would take effect on Jan. 1. The average tax increase would be 13.5%, but the rate each homeowner pays would vary depending on the property type and county.
Owners of investment properties and those whose homes aren’t their primary residence can also expect price increases of more than 14%. These home types aren’t subject to the same regulations, so owners could see price increases of 18% for single-family homes and 15% for condominiums.
To see if homeowners insurance fits your situation and budget, visit Credible to view plans, providers, and costs.
Nearly half of homeowners concerned about weather-related events would increase their home insurance premiums
U.S. property and casualty insurers faced losses of $21.2 billion last year
Premiums are rising nationwide as insurers faced big losses last year, with the U.S. property/casualty insurance industry facing a combined underwriting loss of more than $21 billion in 2023 alone. AM Best reported.
While the $21 billion loss is a slight improvement over the $24.9 billion loss recorded in 2022, insurers are still passing these losses on to customers in the form of higher premiums.
Throughout 2023, insurers raised premiums by an average of more than 11% nationwide. S&P Global Market Intelligence.
An increase in natural disasters has led to these losses as insurers are overwhelmed with claims. Natural disasters, including hurricanes, floods, wildfires, and tornadoes, have caused billions of dollars in damages. The surge in natural disasters in some states has led insurers to pull out of those states altogether and stop writing new insurance.
“A lot of these storms don’t make national news, but they tend to be very damaging at the local level,” said Tim Zawacki, principal research analyst for insurance at S&P Global Market Intelligence. Said“And I think the widespread occurrence of these storms is something that the industry is very concerned about.”
California and Florida were hit hardest, with the largest number of insurers raising premiums or dropping out of business. Florida is particularly vulnerable to hurricanes, while California is more prone to floods and wildfires.
Coverage amounts vary, so it’s important to shop around to find the right home insurance plan for your needs. Visit Credible to start the process and maximize the value you get from your homeowners insurance.
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Home prices hit record high
Record high house prices and rising home insurance costs are making homeownership even more expensive. Home prices rose 6.3% in April from a year earlier, according to the Home Insurance Association. S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
“For the second straight month, our national indexes have been at least 1% above their all-time highs,” said Brian D. Luke, head of commodities, real and digital assets at S&P Dow Jones Indices. “2024 has largely mirrored last year’s strong start, with March and April posting their biggest gains before the summer and fall slowdown.”
“The market is reaching all-time highs heading into summer, once again testing its resilience against what is historically the most active time of the year,” Luke continued.
As buyers return to cities after the pandemic subsides, they are facing much higher price increases than the rest of the country. California has the fastest-growing home prices in the country. Chapman University’s Housing Affordability StudySan Jose was ranked as the least affordable market, followed by Los Angeles, San Francisco, and San Diego. Outside of California, Honolulu was ranked as one of the least affordable cities in the country.
Comparing multiple home insurance quotes can potentially save you hundreds of dollars per year, and with Credible, it’s easy to get a free quote in just a few minutes.
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