CAPE CORAL, Fla. — Some Florida insurance agents, as well as the state’s insurance commissioner, say they’re optimistic about the state’s home insurance industry, despite the fact many have seen their rates double and their policies canceled.
However, many homeowners want to know if the light at the end of the tunnel means rates may drop anytime soon.
Ralph Garcia of Cape Coral called the home insurance market nerve-racking.
He wants to purchase a home but said skyrocketing insurance rates have kept him from buying a home.
“I’m in the process, and that’s one of the things scaring me is the insurance rates. Am I going to be able to afford it,” Garcia asked.
Reid McDaniel of McDaniel Insurance Solutions attended the Florida Association of Insurance Agents (FAIA) annual convention in Orlando last week and said a lot of positive information came out of the meeting.
McDaniel said that reinsurance, which is the insurance that insurance companies buy to protect themselves, was less than most companies expected.
“We expected reinsurance costs to go up about 50%, and they didn’t, which is great. For most carriers, they came back lower, which means it’s going to help with rates,” McDaniel explained.
The FAIA also said it believes recent legislation shows signs of nudging the market in the right direction.
“We’ll get some of the carriers interested in coming back to our market, but it’s going to take some time,” McDaniel stated.
However, not everyone is convinced, including Frank Seril of Cape Coral, who has seen his rates increase so much that he is forced to continue working into retirement to afford his insurance.
“I’m over 65 and on a fixed income. I have to work five days a week in order to keep my house, because of the insurance. Like I say, the mortgage went up $300 a month,” Seril explained.
Florida lawmakers have maintained it would take between 18-24 months before we see any changes in home insurance rates after two special sessions to address the state’s insurance crisis.
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