The property and flood insurance market in Florida is in a bit of an upheaval. With an uptick in roof claims, Assignment of Benefits, Lawsuits and fraud we see rates climbing. Most carriers have filed for a minimum of 15% rate increase and some up to 50%. Citizens, the State Insurer of last resort I being inundated with policies.(It is beyond capacity in my opinion) While many carriers have stop writing coverage, closed up or limited capacity we see a few that have a solid plan for surviving. Your carrier ASI/ Progressive has been losing money the last few years and inevitably will take another rate increase albeit they are still quite solvent. Tower Hill is one of the oldest property insurers in Florida at 50 years old. They will be converting to a subscriber owned insurance exchange as of 2022 and are extremely well capitalized and managed. Flood insurance will also see a large rate increase in the coming years. The new FEMA Risk Rating method has driven up rates for preferred homes and high risk homes. The Private market such as ASI, Tower Hill and Neptune will also see rates rise but will have a more conservative appetite for new business.
Companies like State Farm and Allstate that fled the property market 15 years ago are slowing coming back (SLOWLY). They are also non renewing customers and raising rates. All admitted carriers in Florida are backed by The Florida Guarantee Fund. In the event of the insolvency of a carrier they will pay up to $300,000 for a loss. Carrier like ASI (owned by Progressive and Tower Hill are well capitalized and well manged.
