Recent Florida insurance legislation signed into law by Governor Charlie Crist was a necessary step required to strengthen the stability of the Florida Property Insurance system. Citizens Property Insurance Corporation will be able to raise rates by as much as 10% per year until the premiums they charge more closely reflect the risks the company is taking. Private Florida home insurance companies will also be permitted to charge more to cover the additional reinsurance they are expected to buy in the private market instead of from the Florida Hurricane Catastrophe Fund.

The bright spot is that the Florida insurance system will be on a much stronger financial footing in the coming years if the state can continue the limited hurricane activity it has enjoyed during the past few years – something that has to happen to improve the chances that most Florida home insurance companies can make good on their promise to pay your hurricane claim quickly and fairly.

The bad news is the fact that all of us will be facing up to a 10% increase in Florida homeowner insurance rates. A rate increase of 10% might not sound like much of an increase in other states but in Florida the situation is much different. These increases will be based on higher premiums already in effect after the major rate increases approved after the 2004/2005 Florida hurricanes. Even without the 10% increase, Florida home insurance premiums are already the highest in the country.

The rate increases could not be coming at a worse time. To begin with, Florida is in the middle of a financial crisis just like the rest of the country with depressed real estate, bankruptcies, foreclosure, and increases in unemployment. These rate increases will also be occurring right around the same time that State Farm Florida will begin shedding up to 30,000 policies per month as the company exits the Florida home insurance business and begins cancelling policies. Our subscribers who presently have their insurance with State Farm are telling us that finding comparable coverage with another Florida home insurance company may cost them up to 200% more after they lose their coverage with State Farm.

So where does that leave you as a Florida home insurance consumer during these difficult times?

To start with, you have to understand that even though there are only 40 companies still writing new business, you still have a good chance of locating 5-10 companies from this group that may still be willing to cover your home – even if it is an older home or has close proximity to the coast.

It is very important for you to shop your Florida home insurance policy with more than one independent agent – someone who represents multiple Florida homeowner insurance companies looking for your business. Contacting multiple independent agent will ensure that you are able to get quotes from all the companies in your county who want to cover your home – not just the Florida home insurance companies carried by a single agent.

Also, you have to do due diligence and research on all of the Florida homeowners insurance companies that you are getting quotes from. The 40 companies still willing to write new business vary greatly in terms of their size, financial resources, insurance industry experience, and customer service history. It is important that you ask your agent how each of the companies you are considering is performing in each of these areas.

As you come up with a short list of companies, work with several independent Florida insurance agents and make sure that you have received quotes from all the companies in your county that are interested in covering your home. As you evaluate the quotes, don’t buy the Florida insurance for your home simply on price. Find the right balance of financial stability, outstanding customer service, and the price of the policy. After all, what good is a low price on a Florida home insurance policy if the company is going to take forever to pay your claim at a value that won’t begin to repair the damage your home will sustain after a Florida hurricane?

There is no doubt that the recently approved Florida home insurance increases are going to be difficult to absorb and the timing couldn’t be worse. However, if you take the time to find all of the Florida home insurance companies that are interested in covering your home, you might be able to fight off all of the 10% increase while everyone else has to pay up. Your research can save you thousands!

About Author
Michael Letcher is a corporate executive and a licensed CPA. His on-line database can help you find options for Florida homeowners insurance. Get the secrets to affordable Florida home insurance. in his free newsletter at => http://www.homeinsurancebuyers.org

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