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Rising Arrows

Why Premiums are Increasing

Homeowners across Florida are seeing an increase in their insurance premiums this year and we want to quickly address this issue. In Florida, the insurance market is reacting due to several negative factors.

  1. Global reinsurance costs are on the rise. Reinsurance is the insurance that insurance carriers buy. For example, if we have a hurricane your insurance carrier has a reinsurance deductible of several million dollars, and after that amount is met the reinsurance company pays the rest of the claims. This works much like your insurance deductible only on a larger scale. So, when the cost to the carrier goes up, the cost to the consumer follows suit.
  2. Although most hurricane claims from the past few years were paid and closed quickly, there are still many being filed and disputed by roofers and lawyers operating in a gray legal area. This increases the carrier’s legal costs and inflates their losses paid which must be accounted for with increased premiums.
  3. Frivolous and exaggerated claims filed by a few attorneys are wreaking havoc on carrier’s claims modeling. These attorneys “help” their client by representing them, then taking home exorbitant fees that often exceed the claim payout to their client.

The State of Florida requires carriers to maintain high levels of cash reserves to pay for claims. As their costs increase the carriers resisted raising rates until the state stepped into mandate increases in order to maintain the needed reserves. We understand the difficulty of receiving a rate increase and sympathize with you. Unfortunately, this the reality of our current situation until the weather calms down and claims abuse reforms are passed.

If you have been affected and want to learn more, check out the following resources:

If you have specific questions about your policy, please feel free to reach out to us by phone (407-965-4253) or email at

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