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Home Ownership Preparation :: State of Florida Homeowners Insurance
State of Florida Homeowners Insurance:
Lowering Homeowners' Insurance in the State of Florida
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Prior to 2007, state of Florida homeowners insurance was almost not affordable for most residents. Premiums sky rocketed after the eight hurricanes that pummeled the state between 2004 and 2005, and homeowners were being hit the hardest.
However, Gov. Charlie Crist is currently implementing a bill that will reduce the strain of high insurance premiums for many Florida residents. However, what is this bill? What will it mean? And will it be passed? For the answers to these questions and more, keep reading.
What kind of savings can residents expect?
Those living in South Florida who already have insurance with the state-run insurer, because private carriers have refused to insure their homes, will see a modest savings of just 8 percent. However, these residents have seen their insurance premiums triple since 2004.
Meanwhile, homeowners who still have private insurance will save more – up to about 21 percent on average.
How will the bill work?
The legislation will essentially allow the private insurance carriers to buy additional backup coverage from Florida's Hurricane Catastrophe Fund (HCF) and at below-market rates. Then, in turn, they will pass those savings on to the consumer.
However, another series of major storms, like those seen in 2004 and 2005, could wipe out the HCF and Florida residents could find themselves right back where they started.
What about customers of Citizens' Property Insurance?
Those holding State of Florida Homeowners Insurance from Citizens Property Insurance, the state-run insurance corporation, will see a recent 21 percent rate increase repealed along with an expected 56 percent rate increase.
This move has ruffled private insurance carriers, but state officials are saying it's essential to keep families and residents in Florida.
How can I continue to save on my home insurance?
Many carriers of State of Florida homeowners insurance will offer premium discounts or credits if your home is equipped with storm windows and a wind-resistant roof. These kind of hurricane protection improvements can decrease your insurance premiums by as much as 20 percent.
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Home-Ownership-Preparation.com :: State of Florida Homeowners Insurance