Water damage claims lead to homeowner’s insurance rate increase in Florida

Water damage claims lead to homeowner’s insurance rate increase in Florida

“Pointing to claims for water damage, two property insurance companies Friday asked state regulators to approve average rate increases topping 26 percent.

The Florida Office of Insurance Regulation held hearings on requests by Southern Fidelity Insurance Co. for an average 31.1 percent increase and Capitol Preferred Insurance Co. for an average 26.2 percent increase.

The companies, which are related, have already started moving forward with the increases under what is known as the state’s “use and file” system, but regulators can still reject the increases or require changes.

The proposed increases would affect homeowners and condominium owners and would vary widely depending on factors such as types of policies, locations and ages of homes. But company officials said, for example, that Southern Fidelity customers with homes built in the 1990s could see large increases.”

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According to a report done by ValuePenguin.com, the average cost of homeowner’s insurance in the U.S. has increased dramatically over the last decade. In 2010 they found that the average was approximately $909 for the year. Flashforward to 2020 and a 59% increase was observed at $1,445. According to their projections, Minnesota’s rates will likely increase 3.10% from the previous year. That is somewhere in the middle when compared to the other 50 states.

At Bauer Restoration, we like to think of ourselves as insurance repair specialists. We can assist during the claims process and help take some of the frustration whether lengthy and complex paperwork. Call us at 507-333-9838 or visit bauerrestoration.com for more information.