Due To Many Natural Disasters Insurance Premiums in Florida Remain High

When you try to think of what state holds the spot of having the most expensive home insurance costs, what state would you guess? You may or may not be surprised that the answer is the good old sunshine state – Florida. While there may be some financial benefits to living in the state, paying a low cost for homeowners insurance is definitely not on that list. According to the most recent report by the National Association of Insurance Commissioners, residents in Florida are paying more than 102% higher premiums.

Say that there are two identical homes – one in Florida and one in Tennessee. If you compare the insurance premium costs, you will find that the resident living in Florida’s rates will be double that. So why exactly are the insurance rates so high in Florida?  There are a couple of reasons for this.

First, high premiums can be attributed to the fact that natural disasters (other than hurricanes) hit the re-insurance market hard. Re-insurance is essentially just another layer of coverage that you can buy to help protect you from a catastrophic loss, and it has always played a key part in determining homeowner’s insurance rates. When a company chooses to purchase re-insurance, a part of that tab gets passed on to the customers by means of higher rates. Since 2011, insurers have lost more than $70 billion dollars from catastrophes that have depleted the insurance and re-insurance industries of their capital.


Another reason why insurance is so expensive in the sunshine state is because of the risk of natural disasters. The state can be hit on all three sides by hurricanes, and geographically that is a large risk. A new hurricane model can also jack up the rates of homeowners. Insurance companies base their rates and estimates of potential storm damage by running storm scenarios through hurricane models. There is a new model that can estimate wind damage and this indicates Florida insurers are more at risk than previously thought as the storms move inland. This has prompted many insurance companies to consider buying additional re-insurance. What does this mean for Florida homeowners? It means even higher rates.


Residents are not too fond of the prices of home insurance, and one homeowner stated that there should be equity involved, so people along the coast should pay for the risk; that way others don’t have to deal with the financial burden.  Because there have been so few catastrophes in the past couple of years, there may be a light at the end of the tunnel. Rates may soon see a decrease due to the fact that no major natural disasters have occurred, and even though Florida is still the highest for insurance in the United States, the rates are trying to lower a bit.

Insurance buyers in Florida should watch out though; even though the prices may be dropping, you will need to go through your coverage with a fine tooth comb because a lot of plans are now no longer including water damage.

Living in Florida should not be a financial burden as it is, and home insurance should be attainable for all homeowners who live throughout the state. Many residents of the Sunshine state are beginning to become wary of purchasing insurance because they are worried about the premiums skyrocketing higher than they already are, but to avoid this, just make sure that you have the coverage that you want and need, and make sure that you know exactly what is covered under your current plan.





  • FAQ on Water Damage

    How Can You Cleanup Water Damage on Your Own?

    Cleaning up water damage can be a difficult and time-consuming task. However, there are some things that you can do to clean up the damage and prevent further damage from occurring. The first thing that you need to do is to remove any wet items from the area. This includes carpeting, furniture, draperies, and anything else that is wet. Once you have removed these items, you need to dry the area as much as possible. You can use a wet/dry vacuum to remove the water from the area. You can also use fans to help dry the area. Once the area is dry, you need to disinfect it. This can be done by using a bleach solution or a disinfectant. Once the area is dry and disinfected, you need to repair any damage that has been done. This includes any holes in the walls or ceilings. You also need to repair any damaged flooring. If you have any questions about how to cleanup water damage, you should contact a professional. They will be able to give you more information and help you repair the damage.

    How fast does mold grow after a water leak?

    Under the right conditions, mold can grow within 24-48 hours. Factors that contribue to mold growth include the temperature of the area impacted by water damage and the types of materials that are saturated.

    What happens if you leave water damage?

    Leaving water damage untreated will cause it to spread, potentially damaging other areas of your home. Additionally, long-term exposure to water can lead to the growth of mold and mildew, which can cause serious health problems.

    What is the best way to dry out water damage?

    The first step is to remove the water source. If the water is coming from a leaky pipe, then you will need to fix the pipe. If the water is coming from a flood, then you will need to wait for the water to recede. Once the water source has been removed, you will need to dry out the area. This can be done with a wet/dry vacuum or by using fans and dehumidifiers. You will also need to remove any wet items from the area, such as carpeting, furniture, or clothing.

    How can you tell if a wall or ceiling has water damage

    You can tell if a wall or ceiling has water damage if it is sagging, discolored, or has water stains. A professional restoration contractor can use a moisture meter or infrared camera to detect wet spots and hidden water damage.