Blankit Insurance customers weren’t shocked to hear that the substantial home insurance rate increase and how if would affect them after July 1st. In case you haven’t yet heard, the State of Florida has approved rate increases even steeper than 2 companies sought.Why you might ask? State regulators say high costs stemming from excessive claims in the tricounty region requires the companies to charge customers more money than they would prefer to cover these claim payouts.
The State of Florida has the responsibility to protect its citizens, thus the state “has an obligation to approve rates that are [financially] sound — which may be more or less than what a company requests,” said Sha’Ron James, the state’s Insurance Consumer Advocate, who did not participate in the rate decisions.
How does a rate increase for 2 companies who mainly had losses in the tricounty area affect me in a different county? Well…Market Share
These two carriers — Deerfield Beach-based People’s Trust Insurance and Tampa-based Homeowners Choice Property & Casualty — this week received approval for larger rate increases than they requested.
People’s Trust, sought a 14.5-percent statewide average rate hike and instead got a 16-percent hike. Homeowners Choice, sought a 3.3-percent statewide average increase and instead got an 8-percent hike.
But I don’t have either company? Why are all rates going up?
Because those are statewide average increases, South Florida customers can expect even higher rates due to the increase. That’s because most companies that do business in Florida say tricounty customers on average submit more claims and report steeper losses. To address the higher risk, companies are allowed to charge more thoughtout Florida. A company must maintain itself financially stable to provide enough resources to pay claims. This is a post about only the 2 companies who received MORE than requested, most companies have rate increases. Rest assured that Blankit has the most carriers available to quote your policy and has firm metrics on all carriers prices, we will get you the best coverage and the best rates, even in these changing times.
For more information visit: www.sun-sentinel.com/business/fl-bz-insurance-rate-hikes-20170509-story.html