Bridging the Gap Between Perception and Reality for Florida Property Insurance
The Associated Industries of Florida (AIF) recently released the findings of a statewide poll, revealing that Florida voters rank property insurance costs as their top concern. Even more than other pressing issues facing the state, property insurance is top of mind for Florida residents.
While this is a consistent finding in recent polls, the results were still striking. Inflation has significantly impacted the state, with costs rising across the board. From groceries to building materials, these increases have had a tangible effect on both businesses and consumers.
However, despite this perception, the property insurance market has shown considerable improvement. Recently, Governor Ron DeSantis highlighted decreases in property and auto insurance rates in South Florida.
The landscape of Keaton Beach, Florida, after Hurricane Helene
As Floridians, the importance of a stable property insurance market is well understood for both individual well-being and economic prosperity. However, there’s a disconnect between public perception and the positive trajectory of the state’s property insurance market. It is important that consumers understand the progress being made.
Broader economic anxieties often overshadow the advancements the Florida insurance market has achieved. Data from the Florida Office of Insurance Regulation (OIR) tells a more optimistic story.
Over the past two years, legal reforms enacted by the Florida Legislature and signed into law by Governor DeSantis, have spurred market stabilization. Key indicators, like the arrival of 11 new insurers, decreasing insolvencies, and new legislative measures, point toward a market in recovery.
More importantly, policyholders are beginning to see the benefits of the reforms. According to S&P Global, Florida saw the lowest average statewide homeowners rate increase in the nation at just 1%, while most states experienced double-digit increases, some exceeding 20%. According to the OIR, over the past year, 18 companies filed for a rate decrease, and 35 companies requested no rate change.
This data indicates that the legal reforms are working. Further, the state’s efforts to combat fraudulent claims — a major cost driver—has yielded promising results, helping to control costs and ensure that legitimate claims are dealt with fairly and quickly.
Florida Governor Ron DeSantis delivers the State of the State address.
Even with stable or declining insurance rates, property owners may still see increases in their premiums due to rising property values.
As Florida attracts new residents and businesses, property values rise, which can increase the total amount of insurance coverage required and result in higher premiums. It is important to acknowledge this fact when discussing insurance costs and the state of Florida’s insurance market.
To bridge the gap between perception and reality, communicating the improvements and positive changes in the state’s property insurance market is critical.
While Florida consumers and businesses have felt the impact of rising costs in many areas, including property insurance, these improvements should be shared and acknowledged.
Brewster Bevis, President and CEO of Associated Industries of Florida
