Anyone who has purchased a property in Florida and therefore an insurance policy, has noticed the great increase in prices, and it is precisely in our state where insurance has increased the most throughout the country.
In Florida, insurance costs have risen as much as 57% since 2015. That’s three times the national average. But what are the reasons for the increase?
“Part is inflation, the rise in the prices of construction materials such as wood, steel, cement, which in the case of repairs or reconstructions, insurance companies must pay for,” said Carlos Linares, a real estate agent.
And those damage awards have been a reality from 2017 to 2022, with Hurricanes Irma, Michael and Ian causing $200 billion in losses.
But prices have also been affected by flood insurance.
“FEMA has made changes and some homeowners who weren’t required to pay for flood insurance before now have to and need to buy it,” said Yoelmis Gonzalez, an insurance agent with Univista Insurance in Hialeah.
Linares explained that, in the state of Florida, one in five houses has a requirement for flood insurance, plus property damage insurance.
And in the midst of these increases, what can a person do to avoid ending up paying too much for all those insurance coverages?
González explained that the total costs of the policies can be reduced by not including personal property such as furniture, clothing or external structures to the house, such as the fence, in the home insurance.
“It is also advisable to install doors and windows against impact, since when making the quote, that implies a discount,” he added.
