Insurance premiums in Florida are double or even triple what they used to be, according to a recent USA Today article. In addition to charging considerably higher premiums, some providers have ended people’s coverage altogether. Other policyholders are being asked to make significant renovations, such as buying new roofs. “Florida’s homeowners’ insurance market finds itself in peril,” said the Insurance Information Institute.
Florida has borne the brunt of several significant storms in the past decade, including hurricanes that caused wind damage and flooding. There are also accusations of high levels of fraud. These factors have led some insurers to scale back operations in the state. Others have gone bankrupt.
USA Today spoke to homeowners who have already dipped into their retirement savings, drastically cut costs, and borrowed money to cover their insurance payments. Some Florida residents are considering moving elsewhere, and others have opted to go without property insurance altogether.
The challenge for Floridians is that there’s only so much they can do. The Insurance Information Institute says there’s a lot that needs to happen at a state level to tackle insurance fraud and mitigate the impact of extreme weather events.
Even so, there are steps you can take to minimize insurance costs, whatever state you live in:
Hurricane season is fast approaching, making it a good time to storm proof your home and finances. Stock up on food and drinkable water and make a plan with your family on what you might do in an emergency. In terms of your insurance, make sure you understand what your policy does and does not cover, and consider taking extra flood insurance if you are able.