After the Florida Legislature passed laws that allow insurance companies to increase their rates up to a maximum of 10 percent, it is now expected that the rates of house insurance policies would indeed go up. This move aims to decrease the risks for citizens in Florida to suffer so much in case a hurricane destroys their state.
However, this bill that was recently passed is actually on the other side and very much far from the laws passed in the last two years. Those bills were in fact aimed at holding insurance companies accountable, and to lower their premiums after the increased rates following hurricanes in 2004 and 2005.
As we all expect the raise in insurance costs, it is best to prepare for its coming. Here are important information you have to know and be aware of for you to be able to prepare well:
- Citizens Property Insurance holders in South Florida can expect their house insurance premiums to increase by around 10 percent per year, until their premiums are considered to be financially sound.
- For one to be financially sound, premiums should increase from around 15 to 85 percent, depending on the community.
- Other policy holders of different house insurance policies in the area can also expect their premiums to increase by around 10 percent every year. This is because the bill would actually permit increased rates in accordance to the Florida Hurricane Catastrophe Fund.
- Policy holders can be charged for about 45 percent of their premiums for them to be able to offset costs. However, this is unlikely to happen and is set to a worst-case scenario. If in case that is not enough, property and auto insurance policy holders who are not with Citizens would be charged for about 18 percent of their house insurance premiums.
- If in case there is a major catastrophe, policy holders can be charged for around 10 percent each year.
- Emergency fees after a hurricane are not taxable, and are also not subject to commissions or profitable factors.
With this set of information, you should be able to determine well if you want to shift your house insurance policies. It is best to do this now since the season of hurricanes is fast approaching the state already. Also, it is best to exert your own efforts in protecting your house. Conduct necessary repairs and other construction jobs to strengthen your house.