Homeowner insurance rates skyrocket in waterfront areas in the South
By some estimates, homeowners' insurance in Florida is set to increase by 66% in 2023.
LEARN MOREPosted: 1:49 p.m. EDT Jul 18, 2023
Another insurance company is now cutting its losses in Florida, dropping some of its property insurance customers. AAA said some policyholders are about to receive non-renewal notices, but the company did not say how many people will be impacted.
It's the latest concern for South Florida residents with rising property insurance costs across the state.
"It was a huge jump," said homeowner Ross Carter when asked about the rise in property insurance. "I mean, it was surprising to me. It was a shock. Really, it was."
Although Carter does not have AAA insurance, he said he's concerned his insurance carrier will follow suit.
AAA has announced it is not renewing a very small percentage of higher exposure homeowner's policies. The announcement comes days after Farmers Insurance announced it would be canceling policies in Florida, impacting about 100,000 policyholders.
"It's just going to make the market more of a monopoly than the ability to have a lot of different choices, so the less choices we have, you know, there's not much we can do," Carter said.
AAA said in a statement that last year's hurricane season "drastically raised operational costs for providers."
"That is a concern, and if insurance companies aren't going to help support us when we're in need, you know, that's going to be a problem for everyone," Carter said.
For insurance agents, they've seen this insurance market change drastically over the past few years.
"Three years ago, it was, you know, you're looking at maybe a 5-10% kind of annual rate increase and now it's become like, 'Man you are so lucky that you got a 35% rate increase because at least you got a renewal offer,'" Jake Holehouse, principal insurance agent at HH Insurance Group, said.
AAA said it will help customers find alternate coverage.
This story was originally published by Briana Nespral at Scripps News West Palm Beach.
