Eight new companies will now be able to start writing home insurance policies in Florida. After years of companies leaving the state, many homeowners who’ve seen rates skyrocket want to know if this could be a sign things are changing. Insurance experts insist it is a sign the insurance market is improving.However, the big question homeowners want to know is whether this news will bring down rates.Zeke Robin of Fort Myers said it is a conversation he and many of his friends are having. He has seen his rates rise so much he’s not sure how much more his budget can take.”We haven’t seen it go down yet. We’ve seen a mass exodus of home insurance,” Robin noted.In fact, 11 home insurance companies have left the state or gone insolvent since 2017, leaving the average property owner paying about $ 6 thousand a year to keep their home safe.Chad Evers’s rates have risen, too. Just this week, he learned they’re increasing yet again.”I just got a letter from my mortgage company yesterday that said they’re expecting a shortage in my escrow account, and my monthly mortgage premium was going to go up $50 a month,” Evers explained.The state announced the following eight new companies are entering the market: Ovation Home Insurance ExchangeManatee Insurance ExchangeCondo Owners Reciprocal ExchangeOrange Insurance ExchangeOrion180 Select Insurance CompanyOrion180 Insurance CompanyMainsail Insurance CompanyTailrow InsuranceExperts predict this will benefit homeowners. Many companies are accepting policies from state-run Citizens, which is trying to shed policies to remain fiscally sound.Mark Friedlander with The Insurance Information Institute said the companies would not want to come to Florida if they didn’t feel it was a place where they could be profitable.However, many of the companies are unknown to homeowners, and Friedlander was asked if that should be a concern for people’s shopping policies.”It is somewhat concerning. A lot of these companies don’t have track records. You need to do homework a little bit and ask your agent to help you,” Friedlander responded.Agents like Doug Nellans of The Insurancenter in Fort Myers represent some companies.”They have not yet become battle-tested in the aftermath of the hurricane, so they have to set their prices competitively but responsibly so that they can meet their figure claim obligations,” Nellans explained.He and other experts believe that the news may result in people getting more than one quote while shopping.”I think we’ve finally rounded a corner to a more reasonable insurance cost,” Nellans stressed.Others, however, are taking a wait-and-see approach.”Some of them have had to sell their house and leave,” Robin noted.
Eight new companies will now be able to start writing home insurance policies in Florida.
After years of companies leaving the state, many homeowners who’ve seen rates skyrocket want to know if this could be a sign things are changing.
Insurance experts insist it is a sign the insurance market is improving.
However, the big question homeowners want to know is whether this news will bring down rates.
Zeke Robin of Fort Myers said it is a conversation he and many of his friends are having. He has seen his rates rise so much he’s not sure how much more his budget can take.
“We haven’t seen it go down yet. We’ve seen a mass exodus of home insurance,” Robin noted.
In fact, 11 home insurance companies have left the state or gone insolvent since 2017, leaving the average property owner paying about $ 6 thousand a year to keep their home safe.
Chad Evers’s rates have risen, too. Just this week, he learned they’re increasing yet again.
“I just got a letter from my mortgage company yesterday that said they’re expecting a shortage in my escrow account, and my monthly mortgage premium was going to go up $50 a month,” Evers explained.
The state announced the following eight new companies are entering the market:
- Ovation Home Insurance Exchange
- Manatee Insurance Exchange
- Condo Owners Reciprocal Exchange
- Orange Insurance Exchange
- Orion180 Select Insurance Company
- Orion180 Insurance Company
- Mainsail Insurance Company
- Tailrow Insurance
Experts predict this will benefit homeowners. Many companies are accepting policies from state-run Citizens, which is trying to shed policies to remain fiscally sound.
Mark Friedlander with The Insurance Information Institute said the companies would not want to come to Florida if they didn’t feel it was a place where they could be profitable.
However, many of the companies are unknown to homeowners, and Friedlander was asked if that should be a concern for people’s shopping policies.
“It is somewhat concerning. A lot of these companies don’t have track records. You need to do homework a little bit and ask your agent to help you,” Friedlander responded.
Agents like Doug Nellans of The Insurancenter in Fort Myers represent some companies.
“They have not yet become battle-tested in the aftermath of the hurricane, so they have to set their prices competitively but responsibly so that they can meet their figure claim obligations,” Nellans explained.
He and other experts believe that the news may result in people getting more than one quote while shopping.
“I think we’ve finally rounded a corner to a more reasonable insurance cost,” Nellans stressed.
Others, however, are taking a wait-and-see approach.
“Some of them have had to sell their house and leave,” Robin noted.
Read More: Eight insurance companies enter market amid soaring rates