Central Florida, FL- Two insurance companies are seeking approval for substantial premium increases for Florida homeowners, with proposed hikes of over 50%. Castle Key Indemnity Company, owned by Allstate, has proposed a rate increase of 53.5% for condo owners, while Amica Mutual Insurance is seeking a 54.1% increase for properties like vacation homes.
The Florida Office of Insurance Regulation will hold hearings to decide on the approval of these rate requests. Mark Friedlander, the Florida spokesperson for Insurance Information Institute, attributed the rising costs to severe weather events, including tornado outbreaks during the winter season, in addition to hurricanes.
Friedlander also mentioned that while other insurance companies might consider raising their rates, there is a positive sign as last year, many companies were seeking triple-digit jumps, whereas this year, they are not as high.
In a positive development, seven new insurance companies have been approved to write homeowners’ policies in Florida in 2024. According to Friedlander, this influx of new insurers could lead to better pricing for homeowners as more options become available. A spokesperson for Allstate expressed optimism about addressing longstanding challenges in the state through recent insurance reforms and reaffirmed their commitment to protecting Florida homeowners. WESH 2 is waiting for a comment from Amica regarding the proposed rate increase.
The proposed rate hikes reflect the increasing cost of providing reliable protection for homeowners in the face of rising storm losses. While this means higher premiums for customers, the influx of new insurers could potentially lead to more competitive pricing in the future.