Home Insurance Premiums raised with lower coverage in Florida

By on Jan 3, 2011 in Business, Current Events, Finance, United States Comments

Photo credit: ThirdAge.com

International sites reported that in 2011, home insurance companies may raise the insurance  premiums and lower down its coverage on Florida Treasure Coast.

Florida state regulators has given the go signal to the $718 million in rate increase, according to earlier reports. The increase came at a time when the state of Florida has been spared from any hurricane for five years now.

According to Lynne McChristian, spokeswoman for Insurance Information Institute, home insurance premiums are raised due to several factors that include the following:

  • reopened and new claims related to Hurricane Wilma have increased
  • reports and payouts for sinkhole repairs have increased
  • changes in hurricane mitigation discounts

Here is the part of the statement issued by Sam Miller, executive vice president of the Florida Insurance Council, to explain the increase in home insurance premiums:

Five years without a hurricane have caused memories of our eight-storm, two-year nightmare to become distant while non-hurricane pressures have weakened the property insurance market. Many insurers are losing money and not building the surplus they should build during calm storm seasons, surplus to pay claims when the inevitable big one does strike again.

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