WEST PALM BEACH, Fla. — Homeowners in Florida are receiving unexpected surprises as new insurance renewals arrive, and it’s not just about the premium costs.
Jeff from West Boynton shared his concern in an email to WPTV, revealing that his home insurance renewal increased his out-of-pocket deductible from 2% to 3%. This alteration could translate to thousands of dollars for homeowners, leading to potential financial strain.
“I think everyone is missing what is really going on,” Jeff remarked, emphasizing the potential impact of this deductible adjustment, especially in the event of a storm.
According to Robert Norberg of Arden Insurance in Lantana, many insurance carriers are opting for higher deductibles to mitigate premium expenses. However, he warns that the apparent savings of $500 or $1,000 may not justify the significant increase in out-of-pocket costs when a claim arises.
“Look at the tornado that came through here,” noted Gregory Buck of National Risk Experts, referring to a recent storm in Palm Beach Gardens. Buck highlighted the lack of understanding among many people regarding the potential financial implications until they are directly affected.
Insurance agents and experts are advising homeowners, whether shopping for a new policy or facing a renewal, to carefully examine the deductible terms and conduct a thorough evaluation of the financial implications. Understanding the potential out-of-pocket expenses is crucial to making informed decisions about insurance coverage.
