Two insurance companies are hoping to get proposed premium hikes of more than 50% approved for Florida homeowners. Castle Key Indemnity Company, owned by Allstate, covers condo owners. The company has proposed its rate to jump by 53.5% for customers.A spokesperson for Allstate told WESH 2 the increase was filed with the Florida Office of Insurance Regulation in 2023 and that a majority of their customers have already experienced the increase.Amica Mutual Insurance, which covers properties like vacation homes, has proposed a 54.1% increase. The Florida Office of Insurance Regulation will hold hearings next week to decide if it'll approve the rate requests."The more storm losses we see, the higher premiums are going to go," said Mark Friedlander, who is the Florida spokesperson for Insurance Information Institute.Friedlander said severe weather events are driving up the costs. "And it's not just hurricanes," Friedlander said. "We've had several tornado outbreaks this year during the winter season. Rare."While other companies may also consider raising their rates, Friedlander said last year, many companies were seeking triple-digit jumps."We were seeing many above 100%. So that is at least a positive sign," Friedlander said. Homeowners should see some hopeful signs soon. "Seven new insurers companies have been approved to write homeowners' policies in Florida in 2024. And this is the first time in many years we've seen a large volume of new insurers want to come into the Florida market," Friedlander said. It could mean that people will soon have more choices. "More choice typically leads to better pricing," Friedlander said. In a statement sent to WESH 2, a spokesperson for Amica said in part: "Amica is requesting this rate increase on our dwelling policy line of business, which are policies that often cover secondary residences or rental properties. This rate change specifically does not apply to standard home policies. The rate increase is necessary to restore pricing adequacy for this product. Amica remains committed to providing excellent products and services to our customers at competitive rates."In a statement about Castle Key, a spokesperson for Allstate said in part: "The cost of providing reliable protection for Florida homeowners has risen dramatically, and we’re taking actions to ensure we can protect customers over the long haul. We’re committed to the state of Florida and confident recent insurance reforms will address longstanding challenges in the state."
Central Florida, FL, USA —
Two insurance companies are hoping to get proposed premium hikes of more than 50% approved for Florida homeowners.
Castle Key Indemnity Company, owned by Allstate, covers condo owners. The company has proposed its rate to jump by 53.5% for customers.
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A spokesperson for Allstate told WESH 2 the increase was filed with the Florida Office of Insurance Regulation in 2023 and that a majority of their customers have already experienced the increase.
Amica Mutual Insurance, which covers properties like vacation homes, has proposed a 54.1% increase.
The Florida Office of Insurance Regulation will hold hearings next week to decide if it'll approve the rate requests.
"The more storm losses we see, the higher premiums are going to go," said Mark Friedlander, who is the Florida spokesperson for Insurance Information Institute.
Friedlander said severe weather events are driving up the costs.
"And it's not just hurricanes," Friedlander said. "We've had several tornado outbreaks this year during the winter season. Rare."
While other companies may also consider raising their rates, Friedlander said last year, many companies were seeking triple-digit jumps.
"We were seeing many above 100%. So that is at least a positive sign," Friedlander said.
Homeowners should see some hopeful signs soon.
"Seven new insurers companies have been approved to write homeowners' policies in Florida in 2024. And this is the first time in many years we've seen a large volume of new insurers want to come into the Florida market," Friedlander said.
It could mean that people will soon have more choices.
"More choice typically leads to better pricing," Friedlander said.
In a statement sent to WESH 2, a spokesperson for Amica said in part: "Amica is requesting this rate increase on our dwelling policy line of business, which are policies that often cover secondary residences or rental properties. This rate change specifically does not apply to standard home policies. The rate increase is necessary to restore pricing adequacy for this product. Amica remains committed to providing excellent products and services to our customers at competitive rates."
In a statement about Castle Key, a spokesperson for Allstate said in part: "The cost of providing reliable protection for Florida homeowners has risen dramatically, and we’re taking actions to ensure we can protect customers over the long haul. We’re committed to the state of Florida and confident recent insurance reforms will address longstanding challenges in the state."
