| The recent Florida property insurance law passed | | | | through this challenging period? |
| by the Florida Legislature and signed by Governor | | | | First you have to understand that while there are |
| Charlie Crist was an important step towards | | | | only about 40 Florida home insurance companies |
| improving the financial stability of the Florida | | | | still writing new business, if you shop around you |
| insurance system. It allows Florida's state run | | | | have a good chance of finding 5-10 companies |
| insurance company - Citizens Property Insurance | | | | that are still willing to cover your home - even if it |
| Corporation to start raising its rates as much as | | | | is an older home or has close proximity to the |
| 10% per year starting in 2010 as part of a | | | | coast. |
| multi-year process to move the company | | | | It is very important for you to shop your Florida |
| towards more actuarially sound rates. Private | | | | home insurance policy with more than one |
| Florida home insurance companies will also be able | | | | independent agent - someone who represents |
| to get rate increases in the future as they | | | | multiple Florida homeowner insurance companies |
| purchase more reinsurance from the private | | | | looking for your business. Contacting multiple |
| market instead of from the Florida Hurricane | | | | independent agent will ensure that you are able to |
| Catastrophe Fund. | | | | get quotes from all the companies in your county |
| The bright spot is that the Florida insurance | | | | who want to cover your home - not just the |
| system will be on a much stronger financial | | | | Florida home insurance companies carried by a |
| footing in the coming years if the state can | | | | single agent. |
| continue the limited hurricane activity it has | | | | Also, you have to do due diligence and research |
| enjoyed during the past few years - something | | | | on all of the Florida homeowners insurance |
| that has to happen to improve the chances that | | | | companies that you are getting quotes from. The |
| most Florida home insurance companies can make | | | | 40 companies still willing to write new business |
| good on their promise to pay your hurricane claim | | | | vary greatly in terms of their size, financial |
| quickly and fairly. | | | | resources, insurance industry experience, and |
| The bad news is the fact that all of us will be | | | | customer service history. It is important that you |
| facing up to a 10% increase in Florida homeowner | | | | ask your agent how each of the companies you |
| insurance rates. A rate increase of 10% might not | | | | are considering is performing in each of these |
| sound like much of an increase in other states but | | | | areas. |
| in Florida the situation is much different. These | | | | As you come up with a short list of companies, |
| increases will be based on higher premiums | | | | work with several independent Florida insurance |
| already in effect after the major rate increases | | | | agents and make sure that you have received |
| approved after the 2004/2005 Florida hurricanes. | | | | quotes from all the companies in your county that |
| Even before the coming 10% increase, | | | | are interested in covering your home. As you |
| consumers in Florida were already paying the | | | | evaluate the quotes, don't buy the Florida |
| highest home insurance rates in the country. | | | | insurance for your home simply on price. Find the |
| The rate increases could not be coming at a | | | | right balance of financial stability, outstanding |
| worse time. To begin with, Florida is in the middle | | | | customer service, and the price of the policy. |
| of a financial crisis just like the rest of the | | | | After all, paying a low price for Florida home |
| country with depressed real estate, bankruptcies, | | | | insurance isn't really a bargain if the company you |
| foreclosure, and increases in unemployment. | | | | pick pays slowly and won't pay the full amount |
| These rate increases are going to start happening | | | | that you need to repair the damage to your |
| at the exact same time that State Farm Florida | | | | home after a Florida hurricane? |
| will start cancelling up to 30,000 policies per month | | | | There is little doubt that these recently approved |
| as they start exiting the Florida property | | | | increases in Florida home insurance will be very |
| insurance market. Our subscribers who presently | | | | difficult to swallow and the timing is very bad. |
| have their insurance with State Farm are telling us | | | | However, if you take the time to find all of the |
| that finding comparable coverage with another | | | | Florida home insurance companies that are |
| Florida home insurance company may cost them | | | | interested in covering your home, you might be |
| up to 200% more after they lose their coverage | | | | able to fight off all of the 10% increase while |
| with State Farm. | | | | everyone else has to pay up. Your research can |
| So what is the bottom line for you as a Florida | | | | save you thousands! |
| homeowner insurance consumer as we move | | | | |