There are so many different reasons why home insurance companies raise their rates every year. From record breaking hurricane seasons to an influx of new residents from all over the country, rates have continually gone up. One fact that is largely unknown is that insurance fraud is at an all-time high and Florida houses 18 of the top 50 cities with the highest fraud rates according to the Federal Trade Commission. Florida has seen all lines of insurance increase by an average of 32.5% since 2016. Even though rates are monitored by The State, there always seem to be reasons to justify the company’s requests for rate increases. Here to give you more information within a short amount of time is our resident expert, Whit Harris on the best ways to lower your Florida Insurance Premium! He will give you a better understanding on ways to lower your insurance premiums due to many new increases that can pop up throughout your relationship with your insurance company.
Always remember that premium rate increases are not indicative of any actions caused by a homeowner. If you are asking “Why do homeowners insurance rates go up?, here’s a better understanding. After a claim is filed, the insurers compare the cost of a policyholder’s history with any or all losses with their current premiums. If a home has a history of continuous losses per year, rates can continue to increase for that property. Some recurring losses insurers looks at are water or storm damage, claims made because of stolen property, or home’s age and continued aging process. With these situations, coverage may be harder to come by or premiums will be higher.
Tips on lowering your rates:
- You can always evaluate your policy if you believe you are paying much more than before.
- Look into special endorsements with the insurance company.
- Get inspections such as a wind mitigation or 4-point inspection every 5 years if your home is 15 years or older. Your Agent can use these inspections to look at every available market that your home qualifies for and see if there are more affordable options.
If you are still unsure on what to do if you are paying higher premiums, contact one of our agents and we would be happy to help you save on your homeowners policy! Call us at 850.244.2111 to speak to us. You can also email us at firstname.lastname@example.org.
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Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.