Florida homeowners know that finding an insurance plan
for property in our state is a bit harder than it is in other states. After all, the state is notorious for its rather lengthy, often destructive hurricane season. Because so many private insurance carriers refuse to insure homes in Florida, the state legislature took action to ensure that homeowners could obtain insurance protection. The state achieved this by creating a state-run corporation, Citizens Property Insurance, which is Florida’s largest property insurer. Now, the majority of homeowners in Florida have a home insurance plan through Citizens.
Over the last four years, most Florida homeowners have seen their insurance rates rise each year. In Miami-Dade County, the average increase has been about 6% per year. However, in 2015, lower insurance rates are coming! The board that oversees the corporation recommended lowering the rates, in part, because a hurricane has not hit the state in eight years. In addition, the corporation has asserted that it can lower the rates because it has finally attained actuarially sound rates, meaning that a policy’s cost is based on the potential risk. Some critics claim that the implementation of lowered rates in an election year is more than coincidental. Regardless of the reason for the decrease, most consumers will surely welcome it. The average rate cut for Miami-Dade County is expected to be a little over 4%.
Although about 70% of current policyholders should see their rates decrease, most condominium owners and coastal homeowners with wind coverage only will once again face a rate hike. Obviously, this is disappointing news for condo owners. However, there are inevitable trade offs when choosing a Miami condo over a Miami single-family home. Most condos are located in highly desirable areas in close proximity to the beaches and nightlife, and they offer amenities that aren’t necessarily available in suburban neighborhoods. It really comes down to an individual’s cost-benefit analysis to decide whether the perks of condo living outweigh the extra several hundred dollars per year on insurance. We may be a bit biased, but we tend to think so!