02/12/2021
Why am I paying more for property insurance in Florida?
Florida’s Property Insurance Market Is ‘Spiraling Towards Collapse’ Due to Litigation: Report
By Amy O'Connor | January 20, 2021 (Southeast editor for Insurance Journal and associate editor of MyNewMarkets.com)
Why am I paying more for property insurance in Florida?
Florida’s property insurance market is “spiraling towards collapse” and requires immediate attention if there is any chance of protecting the market, consumers, and ultimately, the state’s economy, according to an analysis about to be presented to the Florida Legislature.
The report points a finger at the state’s “litigation economy” as the main contributor to insurance market woes— seeing it as more of a direct cause than the many weather events Florida has suffered.
Florida’s property insurance market is “spiraling towards collapse” and requires immediate attention if there is any chance of protecting the market, consumers, and ultimately, the state’s economy, according to an analysis about to be presented to the Florida Legislature.
The report points a finger at the state’s “litigation economy” as the main contributor to insurance market woes— seeing it as more of a direct cause than the many weather events Florida has suffered.
Among its findings:
Litigation frequency and severity represents an additional expense load of 17% (and rising) on all earned premiums for insurers in Florida compared with other catastrophe-prone states.
• The fees paid to attorneys by Florida carriers far exceed the damages paid to the insureds.
• In 2019 alone, Florida insurers paid almost $3 billion in lawsuit costs that translated into higher premiums for insureds.
• Although the volume of claims after storms is a factor in costs, claims unrelated to catastrophes account for approximately 60% of all litigation.
• Florida consumers are paying a “hidden tax” to fund the litigation that averaged about $680 per family in 2020.
Read More @ https://www.fultonagency.com/post/why-am-i-paying-more-for-property-insurance-in-florida
