I have some bad news and an unpopular opinion about what’s happening with Insurance, companies going out of business, and everything to do with the Florida real estate market.
Insurance Companies Charging Less Than They Should
This happens because insurance companies haven’t adequately priced their policies, and individuals frequently fail to thoroughly review their policy declarations to understand what they cover.
Choosing the Right Company
When you’re shopping in the market for an insurance company, which one do you pick? You probably pick the one that’s giving you the cheapest rate right?
Typically, people lack the time to thoroughly read all 75 pages of an insurance company’s declaration, research their coverage, or assess the financial stability of the insurer when making a claim.
Current Insurance Situation
We’re currently facing a situation where many insurance claims are being filed, and more than five major insurance providers are going out of business. We’re going to be entering into a market where there is very little competition for insurance in the near future.
Insurers are currently trapped in a riddle: In a world where the risk of costly disasters is rising but high premiums are squeezing policyholders and angering state regulators, how can they continue to make money? This in turn greatly affected insurance companies’ ability to pay off insurance claims – making it more costly for them to operate.
As more insurance companies face insolvency and some cease policy renewals, our insurance claims for properties hit by category four or five hurricanes could become more challenging.
Watch the whole video here:
I understand and empathize with everyone else that Florida’s insurance premiums are getting higher by the day. However, supporting these insurance companies indirectly secures our future insurance claims.