Insurance companies are seeking approval for substantial premium hikes exceeding 50% for Florida homeowners, with Castle Key Indemnity Company and Amica Mutual Insurance leading the charge.
Castle Key Indemnity Company, a subsidiary of Allstate catering to condo owners, has proposed a staggering 53.5% rate increase for its customers. According to a spokesperson from Allstate, the rate hike was submitted to the Florida Office of Insurance Regulation in 2023, and a majority of policyholders have already experienced the adjustment.
Meanwhile, Amica Mutual Insurance, which specializes in properties like vacation homes, has proposed an even higher increase of 54.1%.
The Florida Office of Insurance Regulation is set to conduct hearings next week to determine whether to approve these rate requests.
Mark Friedlander, the Florida spokesperson for the Insurance Information Institute, attributes the soaring premiums to the escalating costs driven by severe weather events. Friedlander highlights that the recent spike isn’t solely due to hurricanes but also encompasses uncommon occurrences like winter tornado outbreaks.
While some insurers may contemplate raising their rates, Friedlander notes a positive shift compared to the previous year when many companies sought triple-digit increases. “We were seeing many above 100%. So that is at least a positive sign,” he states.
However, Friedlander offers a glimmer of hope for homeowners by revealing that seven new insurance companies have been greenlit to offer homeowners’ policies in Florida in 2024. This influx of competition signifies a potential for expanded choices and, ideally, more competitive pricing.
In response to queries regarding the rate increases, a spokesperson for Amica clarified that the proposed hike specifically targets dwelling policies, which typically cover secondary residences or rental properties. The statement emphasizes the necessity of the increase to restore pricing adequacy while reaffirming Amica’s commitment to delivering quality products and services at competitive rates.
Similarly, a spokesperson for Allstate, addressing concerns about Castle Key’s proposed hike, underscores the mounting costs of providing reliable protection for Florida homeowners. The spokesperson expresses confidence in recent insurance reforms aimed at tackling longstanding challenges in the state, affirming Allstate’s commitment to serving Florida residents.
