Call: 203-637-6655 or email – Kyle Shepard

Looking South - Shepard Insurance Group

Looking South

Florida Home Insurance Continues to Crumble

“Florida insurers posted a $1.6b operating loss in 2020, without a major storm”

In data taken from the NAIC, National Association of Insurance Commissioners, Florida represents only 8% of home insurance claims nationwide, but a staggering 76% of lawsuits filed against insurance companies. Couple that with Florida insurers posting a $1.6b operating loss in 2020, without a major storm, and you have a problem.

What does that mean?

In trying your best to avoid being the victim of a staged accident fraud and the increase in insurance rates, practice defensive driving with these additional thoughts:

In its simplest explanation if you are considering a Florida property you need to pay attention to three driving factors:

Location – how close will you be to the shoreline, is there flood exposure?

Protection – you need to be bullet proof against the wind (hurricanes). Does the home have impact glass windows, garage doors, and shutters? Be prepared to spend $12 – $15,000 per 1,000/square feet in retro fitting if your home does not.

Leverage – considering Florida, speak with an agent early to determine if you can piggy back off of your northern insurance coverages to get a comprehensive Florida policy.

Simply based on hurricanes and the litigation, these steps are important to secure an insurance policy that will pay claims promptly. Insurance will always be available, but the question will be how long will a claim take to settle. Hurricane IRMA was in the fall of 2017 and many claims are still open!

If you are exploring Florida, reach out to Kyle for a brief on these steps, and then let us do a location search to identify insurance options on a property that you are considering buying. kshepard@shepardinsgrp.com or call 203.698.9342.


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