Florida's property insurance system is under scrutiny as a report from the Insurance Fairness Project claims the state's recovery after Hurricane Ian is mostly an illusion, with persistent issues like rising premiums and unpaid claims.
"The report says premiums are up 50% since 2019. It says 1 out of 5 Floridians can't even afford insurance right now," Elias said.
Annette Piccirilli, a Fort Myers resident, explained how insurance costs influenced her home-buying decisions. "We're in the process of closing on a home here in Fort Myers on McGregor, and we were very strategic on how we chose the location of the home," Piccirilli said. She added, "There were homes we were very interested in but had to rule out."
The report also notes that Florida leads the nation in unpaid claims, a problem Piccirilli experienced firsthand. "We felt let down," she said.
Dropped policies are another significant issue for homeowners. One homeowner shared, "We were on Citizens at one point and then Citizens did the depopulation thing ... they threw us off onto something even higher."
Homeowners are facing steep insurance costs, with some paying up to $5,000 a year or more. The report states that rates have risen 54% since 2019.
Linda Quimby, another Fort Myers resident, has had to make difficult choices to manage her insurance costs. "I've had to remove coverages that I don't need anymore, and self-insure for my contents and remove it because I have to lower my premiums because even with the rate decreases, it's very expensive," Quimby said. She wishes she could go without insurance, but is required to keep wind coverage due to her mortgage. "I have a mortgage, so I have to keep wind. But I would look at self-insuring for that if I could remove it," she said.
Insurance agent Doug Nellans from The Insurancenter commented on the report's findings. "Certainly it's a daily reality for us that we get contacted by clients asking if there are any improvements possible for them," Nellans said. He added, "This report certainly highlights a cautionary undertone to the insurance market recovery."
The report also claims that many smaller new companies were built on political connections and linked to troubled companies. Nellans advises consumers to shop around before purchasing insurance. "There is a good mix of new carriers and well-established legacy carriers to pick from," he said.
Homeowners agree that reform is necessary to reduce rates. "There definitely needs to be some reform to bring these rates down," one homeowner said.
The report concludes by calling Florida's insurance recovery an illusion, stating that prices remain high with less protection. It warns that new insurers are on shaky ground and could collapse if a major storm hits, emphasizing the need for more oversight to protect homeowners.
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