Now that we are in the thick of the official hurricane season here in Florida, you may have noticed - if you recently tried to bind a new home insurance policy - that most carriers will stop writing up to a week or two prior to a named storm possibly impacting the state. The reason for this may be obvious - they don't want to take on additional risk of losses tied to hurricane damage - but the specific details vary by carrier.

Some companies will wait up to 24 hours before an anticipated hurricane impact before halting writing policies. So if you are trying to close on a new home purchase for example, and that closing date winds up falling near a hurricane impact date, it would make sense to contact a local insurance agency (representing many carriers - versus contacting an individual carrier), to see which companies are still willing to bind your policy in time for closing. If you have a hard time finding a carrier that will take you, you may simply need to ask for a few extra days to close, as any home purchase made with a mortgage lender will require a bound policy prior to closing.

In terms of storm damage and insurance premiums being affected, the outcome is pretty simple. The more damage, the more likely premiums will rise at renewal. Even if the storm doesn't directly impact your home or city, overall state damage may cause the carrier you use to pay out a large number of claims that year, which may result in all of their policy premiums increasing at renewal.

While private insurance carriers don't have a "cap" on the amount they can increase premiums annually, they DO have to have their increases approved by the Florida Office of Insurance Regulation, where State officials decide whether to approve or disapprove a proposed rate increase based on whether the company "has provided adequate support for the request."

The only insurance carrier that DOES currently have an annual increase cap in Florida is Citizens, the State-backed "insurance provider of last resort." That annual cap is 14% for 2024 and 15% for 2025. However, if private carrier options are available for your home within 20% over or under a Citizens quote, you will be forced to go with that private carrier.

Overall, whether a named storm is heading toward the state or not, it is wise to work with a local insurance agency annually - to re-shop your rates and see what the best option for you in the upcoming year will be. This way - whether your carrier increased their rate significantly or not - you will be able to secure the lowest-price option for your individual needs.

Questions? Call us anytime!