Home Insurance

Will the property insurance crisis in Florida really get worse before it gets better?

Posted on by McGriff-Williams in Home Insurance |

The cost of reinsurance for Florida property insurers has increased over 100% in the past 4 years. It is projected that reinsurance will go up another 50% at the time of renewal on June 1st.

If you’re wondering what reinsurance is It’s essentially insurance for insurers. It transfers risk to another company to reduce the likelihood of large payouts for a claim. It’s an extra layer of protection that allows insurers to remain solvent by recovering all or part of a payout.

This system worked great for a while, but now those reinsurance companies are much less interested in the potential risk that Florida property brings. Just in the past 6 years, over $807 billion (with a B) has been paid out in weather related disasters. So, as you can imagine, those reinsurers’ risk appetite for our beautiful state has diminished. The impact of that fallout will be different for each carrier, but significant rate increases are still expected.

From an insurance perspective, we had a rough year in 2022. Rates were at an all-time high, underwriting guidelines were more strict than ever, carriers were going out of business, and our home state was hit with some strong storms causing lots of damage.

Unfortunately for all of us, the reality is that yes it may get worse before it gets better. We expect this summer, typically the busiest time of year for real estate, to be tough when it comes to home insurance being attainable and affordable. We’ve weathered some major storms, quite literally, in the insurance industry before and well… this too shall pass. We also had two different reform bills passed last year giving us hope for change that will benefit all Florida residents moving forward. And it isn’t like we have a choice to avoid it since it’s still likely a required piece of home buying/selling transactions.

The good news is that we are in this together. We want to help get to closing and for all homeowners to feel confident that they’re adequately protected. Our biggest piece of advice to anyone looking to purchase a home is to START THE PROCESS EARLY when it comes to insurance!

 

5 Major Changes to Home Insurance in 5 Years

Posted on by McGriff-Williams in Home Insurance |

Home insurance is an ever-changing topic of conversation sometimes positive and sometimes not so much. The last five years and the next five years to come have been and will be HUGE to the property insurance industry, thus impacting real estate drastically. Here is a recap of what we’ve seen and what we expect.

THE PAST FIVE YEARS:

  • Litigation and fraud increased more than ever before, driving premiums up and causing at least 10 companies to go out of business or stop writing in Florida
  • Underwriting guidelines became the most strict we’ve ever witness roofs have to be as new as 7 years old with some companies and risks are scrutinized with extra inspections and requirements
  • It is estimated that since 2017, the four storms that hit Florida (Irma, Michael, Ian and Nicole) cost over $160 billion with a net loss for Florida property insurers of $3 billion causing insurance carriers to be unprofitable and reinsurers to question their risk appetite
  • Homeowners are seeing rate increases of over 50%
  • Policies, because they’re hard to come by, may be lacking coverage from what is typically recommended

THE NEXT FIVE YEARS:

  • Citizens is no longer the insurer of last resort and is writing more business than ever, but will soon be requiring flood insurance on all policies, regardless of flood zone risk level
  • The process of Assignment of Benefits (AOB) is no longer allowed for contractors to obtain rights to manage claims for the insured via a signed form
  • One-way attorney fees are no longer permitted so the astronomical payouts from insurers will diminish significantly
  • Two reinsurance funds were created in special session in 2022, which will help carriers still take on exposure
  • We expect in the next 2-3 years, premiums will begin to level out and come down some although rates will remain competitive since there aren’t as many carrier options, our hope is that they come down a reasonable amount

It’s been a while since there was good news in the property insurance world but all of these are steps in the right direction that we can all be excited about. The end goal is to make insurance available and affordable for all Florida homeowners again.

What does the stormy season of 2022 look like and how can you prepare?

Posted on by McGriff-Williams in Home Insurance, McGriff-Williams News |

As if there isn’t enough going on with Florida home insurance these days, we are now upon hurricane season. NOAA forecasters have estimated there to be a 65% chance that this year will have above average activity, which would make it the seventh consecutive year of unwanted overachievements.

For the 2022 hurricane season, they have forecasted a range of 14 to 21 named storms (winds of 39 mph or higher), of which 6 to 10 could become full blown hurricanes (winds of 74 mph or higher). This includes 3 to 6 major hurricanes (category 3, 4 or 5; with winds of 111 mph or higher).

So what can you do? How can you best prepare and if in the process of a real estate transaction, avoid closing delays or lost deals? We can’t stress enough the importance of starting the insurance process early. This is helpful even outside of hurricane season because underwriting guidelines have tightened up and things can take time like inspections, appraisals, remedying any issues, etc. But the idea of starting early is more important than ever when it’s stormy season. If there is a named storm headed our way or posing as a threat to our area, insurance carriers will begin binding suspensions. This means that any policies in the quoting status cannot be bound regardless of closing requirements.

Here are a few other quick tips to help you prepare:

  • Trim trees and pick up any lawn debris
  • Double check the Other Structures coverage on your homeowners policy
  • Be sure you understand your hurricane deductible, it’s oftentimes different
  • Purchase household items, food, and water for an emergency backup kit
  • Be prepared to document and mitigate any damage

We are hopeful for an uneventful storm season so we can focus on the positive change we’re seeing with property insurance reform but if you need anything or have questions, we’re here in all kinds of weather.

 

Property insurance reform bill passes in special session

Posted on by McGriff-Williams in Home Insurance, McGriff-Williams News |

Correction, October 30, 2026: An earlier version of this post misstated two parts of the 2022 laws. It said the roof age protection for roofs under 15 years old depended on an inspection, which was not correct, and it described the 25% roof repair change incorrectly. Both bullets below have been fixed. This post describes the 2022 laws when they passed and is not a summary of current rules.

The property insurance reform bill that was under review in the Senate’s special session this week has passed! It received our Governor’s signature and is yet another step in the right direction to making home insurance available and affordable again.
More details on what this bill entails can be found here but the following points are what we consider to be the most important:
  • A new state reinsurance program for insurance companies, called the Reinsurance to Assist Policyholders program
  • Insurers can’t refuse to issue or renew a homeowner’s policy solely because of roof age if the roof is less than 15 years old. For a roof 15 years or older, the insurer must allow an inspection by an authorized inspector, at the homeowner’s expense, before requiring replacement, and can’t refuse to issue or renew solely because of roof age if the inspection shows at least 5 years of useful life left.
  • Limitations on attorney fees and fee multipliers
  • New roof deductible options
  • More Office of Insurance Regulation guidelines to help prevent Florida-based carriers from financial instability or liquidation
  • For a roof built, repaired or replaced to the 2007 Florida Building Code or a later edition, when 25% or more of it is being repaired or replaced, only that portion has to meet the current code, so the whole roof doesn’t have to be replaced
  • Steps to curb fraudulent roof claims and roofing contractor solicitation
  • $150 million for wind mitigation inspections and matching grants through the My Safe Florida Home program

Governor DeSantis signed the bill on May 26, 2022.

We remain hopeful and excited for positive change. We are in this together and ultimately, want to keep homeownership as great of an experience as possible for all Floridians.

What Shapes Your Florida Home Insurance Premium

Posted on by McGriff-Williams in Home Insurance, McGriff-Williams News |

If your renewal notice showed a higher premium or a change you didn’t expect, it helps to know what goes into the price. Here is a plain look at how rates are set, what has changed in Florida law and what you can review before renewal.

How home insurance rates are set in Florida

Insurance companies file their rates with the Florida Office of Insurance Regulation, and state law says rates may not be excessive, inadequate or unfairly discriminatory. The factors reviewed include past and expected losses, expenses, competition among insurers and the cost of reinsurance, which is coverage insurance companies buy for themselves to help pay for large losses. Your own premium also depends on your home and the coverage and deductibles you choose.

Florida law changes since this post first ran

When we first wrote this post in 2022, a property insurance reform bill had been postponed. The Legislature has since passed several property insurance laws, including Senate Bill 2A in December 2022.

  • Assignment of benefits: For home and other residential property insurance policies issued on or after January 1, 2023, Florida law generally doesn’t let you sign over post-loss benefits to a third party, such as a contractor. The same rule applies to commercial property policies.
  • Attorney fees: Senate Bill 2A, which took effect December 16, 2022, ended one-way attorney fees in property insurance lawsuits, so each side generally pays its own attorney fees, with some exceptions. Older policies may be treated differently, so for a specific case, ask a Florida attorney.
  • Claim deadlines: Notice of a new or reopened property claim is generally due within 1 year after the date of loss.
  • Roof age: Roof age can affect your price and how a roof claim is paid. Florida law says an insurance company can’t refuse to issue or renew a home policy solely because the roof is less than 15 years old. See our roof guide for more.

These laws don’t set any one person’s premium.

What you can review at renewal

For a home policy, Florida law generally requires your insurance company to give at least 45 days’ written notice of the renewal premium and at least 120 days’ written notice of nonrenewal, with some exceptions. Got a non-renewal notice or a renewal bill that went up? A second look can help you see what changed and what your options are. Reach out when the notice arrives so there’s time to compare options before your renewal date. Worth checking:

  • Your coverage amounts and deductibles.
  • Updates since your last policy, such as a new roof, plumbing or wiring, with permits or receipts.
  • Wind mitigation reports matter mainly for homes built in 2001 or earlier. If your newer home has impact rated windows and doors, ask us whether a report would help. The inspection may be at your own cost. McGriff-Williams Insurance doesn’t do wind mitigation inspections.

McGriff-Williams Insurance is an independent agency, so a licensed member of our team may be able to compare options from the insurance companies we represent. Call us at (352) 371-7977 or request a quote.

General information, not legal or coverage advice. Coverage depends on the policy issued, its terms and underwriting. Laws are summarized as of November 1, 2026. McGriff-Williams Insurance is an independent insurance agency in Gainesville, in business since 1983 and licensed in Florida.

Sources