Miami homeowners insurance is nearly double that of any state in the nation and that is just for basic homeowners’ insurance. It doesn’t include any bells or whistles. If you want to put any extras on your policy, you will pay even more. Why is the price so high for Miami homeowners insurance?
There are several things that are happening in Miami according to https://floridainsurancequotes.net/home-insurance/home-insurance-miami-fl/. One situation that occurs is water damage, mold development and the need to call restoration companies. This is prevalent due to the constant heat and humidity.
Calling restoration companies to come in and make repairs results in their having the homeowner sign what is known as an Assignment of benefits (AOB). This takes the rights of the homeowner to negotiate cost directly with the carrier away and also takes the right of the insurer away in that they don’t get to see the damage prior to repair.
These AOBs have risen from 406 incidents in 2006 to over 30,000 a year. They are costing the insurance companies a fortune in cities, Miami as one, which in turn has raised the cost of Miami homeowners insurance by upwards of eight percent.
This is just one, though significant, reason for high cost of insurance in Miami. Another reason for a greater expense than with most places is the ‘reinsurance’ that insurance companies are forced to take on within their businesses. This is kind of like the best home insurance Florida residents buy to protect themselves from extreme expense brought on by natural disaster claims.
Florida is known for its share of natural disasters whether it be hurricanes, tropical storms, wildfires, hailstorms, tornadoes, flooding, sinkholes, you name it. It is the second among all states for disaster risks and has become the third highest for home insurance costs because of that fact.
Because the insurance companies found it necessary to purchase reinsurance to cover themselves for these natural disasters, they put that cost back on their clients. In 2010, regulators approved an increase upwards of 18.7% for the Florida homeowner, and the governor at the time allowed a leading insurance carrier to increase their rates significantly. Because other smaller, independent companies wanted to remain competitive, they followed suit.
https://floridainsurancequotes.net/home-insurance/homeowners-insurance-miami/, it’s estimated that Miami homeowners insurance will triple by 2022 second to the AOB and the reinsurance costs for the private citizens. The saving grace in paying these high costs for owning a home in this beautiful city is that the cost of living is less, the weather is beautiful year round, the beaches are magnificent and there are multitude activities to enjoy. Sometimes you have to pay a little more in one area to experience something wonderful in another.