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Why Insurance Rates Are Rising

The perfect storm has been brewing over Florida’s homeowner insurance market for quite some time. Those shopping for homeowners insurance or looking to renew with their current provider, are in for a shock. The average yearly cost to property owners in Florida is nearly double what it is for the rest of the country. There are several leading causes of rising insurance rates, and in this blog, we will break down why rates are rising and what you can do to save. 

Three Leading Causes Of Rising Insurance Rates

Roof Claims

The abundance of roof repair claims in Florida is hurting chances at better rates. Whether it’s from normal water damage or natural disasters such as hurricane damage, the rise in roof claims is apparent. 

Under Florida insurance regulations, policyholders are allowed to assign their benefits to contractors, who can make repairs and send the bill directly to the insurance company. As insurers pay off claims, the rising cost of claims and litigation is passed along to policyholders. This increased cost causes premiums to increase from one year to the next. Insurance experts say homeowners should expect an increase of at least 20% to 30% when they go to renew their policy this year. 

Spike In Reinsurance Coverage

Another factor that can be blamed for premium increases is a spike in reinsurance prices. Insurance companies purchase reinsurance coverage to help them pay claims and limit liability on specific risks. Florida law allows claims for a named storm to be made up to three years after the disaster. Claims from both Hurricane Irma and Michael have put additional pressure on insurers. Hurricane Irma alone caused nearly $17.4 billion in insured losses, causing the insurance market in Florida to tighten up. As more insurance companies seek reinsurance, rates rise, and this affects homeowners and property owners directly. 


In recent years, Florida has become one of the most popular states to move to. It ranks in the top seven for population growth in 2021. Consequently, the rise in population had led to property value increasing and premiums on homeowners insurance rates to rise. We’ve seen this trend in South Florida for quite some time, but now Central and North Florida are experiencing a boom in population growth as well. Other factors that affect premiums can be how close you are to a fire station, local crime rates, and how close you are to a body of water. 

Quick Tips To Reduce Insurance Costs

Although homeowners insurance costs are inching up, there are ways to possibly save money. Here’s a quick list of tips we recommend considering:

  • Raise your deductible: Taking on additional risk can help lower your costs. Discuss with an insurance company how raising your deductible by $500 or $1,000 can help lower overall costs.
  • Bundle policies: Consider bundling policies such as homeowners and auto to see a reduction in premiums. Also, umbrella insurance can offer an extra layer of protection while potentially saving you on costs. 
  • Switch from monthly to annually: In most cases, switching from monthly payments to annual or semiannual payments can help lower your bill by a percent or two. 
  • Complete home improvements: For older homes or fixer-uppers, your initial insurance coverage may be in short supply. Consider investing in home improvements such as replacing the roof or electrical to ensure you have full coverage and potentially reduce premiums. 

Find Ways To Save With COBIA Insurance

As insurance experts, we understand that approaching homeowners insurance and rising rates can be a headache. With the amount of different coverage and plans, it can be difficult to decide what fits your needs the best.
That’s why at COBIA Insurance, we are committed to helping families and business owners with their insurance needs. We aren’t just a normal insurance company. We strive to build meaningful relationships with clients and have earned a 95% renewal rate. For more information on how COBIA Insurance can help you save on premiums, please contact us today for a free quote!

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