So what's going on? Every year we see premiums rising. Surely with so much competition in the Florida home insurance market, you wouldn't expect to see such inexorable rises in premiums? Especially when we haven't had any hurricanes in such a long time.
Let's consider the situation more carefully.
The cost of repairing and rebuilding houses is a reflection of the rising price of labour and building materials. This means that cost to the insurers of claims under the buildings cover similarly rises. So as their costs rise, so do your premiums. And there's also the indisputable fact that cost inflation also affects the insurance companies own operating costs. Wherever possible, they're bound to add a little extra on for that!
Then there's that lovely Florida weather. We may have avoided hurricanes but nevertheless it's a fact that storms with extensive damage are becoming ever more frequent. Those events must have cost the insurance companies multi-millions.
The other area where costs have been rising is burglary. The average burglary claim has now risen to around $1800. There seem to be two reasons – firstly burglars are finding pickings easier to come by and move on. Modern family homes are packed with valuable electronic gismos – from laptops to I pods, digital cameras and flat screen TV's. The other reason is that burglars are targeting well-off neighbourhoods more and more.
Against this background the insurance companies are able to price home and contents insurance down to individual postcodes. If their records show a problem an increasing incidence of burglary in you immediate area, their computers will load your premium to reflect the additional risk.
So what can you do to save money?
The most important step by far, is to work with a good insurance agent who will conduct an annual policy review with you. Maybe it's a chore, but working with us to go through a policy review will yield you savings every year.
For more information about affordable Home Insurance Premiums, contact our agency at (954) 431-9423 or click here to contact us today.