Florida home owner's insurance costs to go down in Broward County soon

Mar
04

We have talked about Florida home owner insurance before. In January, we talked about how Florida legislators were working on lowering the rate that home owners pay in Florida. Well, they have finally come up with a solution that will fix part of the problem. Depending on where you live, the savings will be anywhere from 10%- 50%+. The average savings here in Broward County should be around 28%-52%.

Here is how it works as I understand it. The rate decrease will come into effect due to a reduction in reinsurance rates. Reinsurance is what insurance companies use to help pay for major catastrophic events such as hurricanes. They buy it from the state’s Florida Hurricane Catastrophe Fund. When they have to buy it, they make up for it when they renew your other insurance policies. Now, private insurance companies will be able to buy reinsurance at a much lower rate and be required to pass that savings onto you, the home owner.

This will not affect policy holders of Citizen’s Property Insurance Corp since the home owner’s insurance company is a state-backed insurance company. They will get separate refunds since the state did reduce the insurer’s rate in general. You will need to contact your home owner’s insurance company for specific details.

If you have already renewed your policy this year or your home owner’s insurance company has already been approved for a rate increase, you may not see the savings until next year. So hold on to your hats this season and know that the cavalry is on the way.

There is one small kink in the plan that should cause you to raise an eye brow. Have you found it yet? Look closely at what you have read. Now you are seeing it. The state will be receiving less money towards the Hurricane Catastrophe Fund due to the lower rates. This means that there will be less money in the goodie bag when and if funds are needed. So yes, we need to rejoice in the reduction of costs each month but be aware that it may take longer to get your funds when you need it. But for right now, we will smile and take the good news to heart.