As Homeowners Face Soaring Prices, Lawmakers Consider Ways To Prop Up Struggling Property Damage Insurance Industry
Concerned over ever increasing costs of homeowner’s property damage insurance in Daytona Beach? It is a serious problem residents struggle with and one state lawmakers have taken notice of. However, one of their primary concerns is propping up the state’s struggling property damage insurance industry. Find out more about the problem and what is being proposed.
Given The High Costs Of Property Damage Policies, Why Are Insurers Still Struggling?
According to an October 2021 WFTV News 9 report, lawmakers recently debated a serious problem impacting residents throughout the state: the rising costs of homeowner’s property damage insurance. While not required by state law when purchasing a home, it is typically required by mortgage lenders.
For consumers, rising property damage insurance costs is a major problem. Estimates indicate these costs have risen three times faster than the national average since 2016, representing increases of up to 183 percent. Despite increases, lawmakers are concerned that Florida’s insurance industry continues to struggle. According to the news report, some insurers are even leaving the state due to major losses and dramatic drops in profit that they claim are nearly putting them out of business. Consider the high prices residents pay for insurance, why are these companies struggling?
- Due to tropical storms and hurricanes, Floridians typically file more claims than in other places across the country;
- Policy holders are increasingly filing-and winning-large property damage claims in court against insurers, rather than accepting lesser amounts in a settlement.
- Roof repair claims have skyrocketed in recent years, as companies go door to door looking for problems, pointing out potential damages, and encouraging homeowners to file claims.
How Florida’s Insurance Industry Problems Impact You As A Homeowner
According to statistics from the Insurance Information Institute (III), an average of five percent of U.S. homeowners end up filing a property damage claim each year. This number is significantly higher in Florida, particularly in coastal areas such as Daytona Beach where heavy rains, flooding, and hurricanes are a serious threat. As insurance companies continue to complain about the unique problems they face in our area and the lost profits due to paying out on claims, how does this actually impact you as a homeowner?
- Insurance rates continue to increase at alarming rates;
- Insurance companies leaving the state create more of a monopoly in the market;
- Homeowners are increasingly being denied coverage, particularly for older homes;
- They are facing more hurdles in filing claims and in obtaining reasonable property damage settlements.
Let Us Help You Today
As insurance companies get increasingly desperate to make a profit, it is important to have someone protecting your rights as a policy holder and helping ensure you get the amount you are entitled to in a claim. Before making any statements to insurers or accepting a settlement, call or contact our Daytona Beach property damage claims attorneys at Bundza & Rodriguez online and request a consultation today.