May 2022

May 2022 • Florida Pool Prosm 15 By David Griffiths, Insurance by Ken Brown / Florida property insurance woes to continue Last month we began the discussion of property insurance in Florida and looked at data on litigations and the Legislature’s failure to act. Here is some more information. The Insurance Information Institute reports statewide premiums are up nearly 25 percent this year. Experts say there is a myriad of issues. "Rampant roofing fraud, runaway litigation and rising replacement costs of homes," said Insurance Information Institute spokesman Mark Friedlander. According to the Insurance Information Institute, Florida's insurance companies had $1.6 billion in underwriting losses in 2021. “The state of homeowners insurance in Florida right now is in crisis, we are in serious crisis mode, where we’re on a trajectory that the private insurance market could collapse,” said Friedlander. Further, “every insurer is losing money, and they’re losing a lot of money.” The 52 insurance companies writing policies in Florida lost more than $1.6 billion. This year, fewer companies will write policies in Florida because of those losses. There's much more than just roofing fraud causing rising premiums in 2022. Supply chain disruptions cause a lack of building materials like lumber. In turn, it costs more for insurance companies to pay to rebuild homes a f t er a f i l ed c l a im. That is forcing more homeowners to rely on Ci tizens Property Insurance Corporation, the state’s insurer of last resort. 777,000 Fl or i d i ans now use INSURANCE UPDATE