Cause Of Florida’s Property Insurance Mess Isn’t Being Addressed

Despite massively raising prices for homeowners over the past few decades, the 52 property insurance companies serving Florida are bleeding money, regulators and lobbyists said.

The claims have lawmakers thinking about another round of changes to prop up the struggling industry as consumers complain insurance is hard to get and expensive to hold on to.

‘Their issue is very, very simple,’ one regulator told a Senate committee Tuesday. ‘They either raise rates or these companies go out of business.’

Property insurance is not required by Florida law, but it is required by mortgage lenders. That means for most homeowners in the state, it’s a necessary expense. Tenants are also affected because many landlords pass on property insurance costs through lease agreements.

According to LendingTree, Florida’s property insurance costs rose three times faster than the national average between 2016 and today. The report said Florida’s largest company raised its rates by 183% during that period.