Hating Florida homeowners insurance companies has become a very popular pastime. After all, many well known national companies started leaving the state after Hurricane Andrew and that trend has continued through today.
After the Florida hurricanes of 2004 and 2005, more companies continued to dramatically increase both their prices and their home insurance cancellations.
But there are now two distinct groups of home insurance companies in Florida. The first group of companies consists of well known companies.
The second group consists of Florida based regional companies that have started doing business in the state over the past 15 years – many since รับสร้างบ้าน the end of 2005.
In this brave new world of big companies leaving and new companies entering the Florida market, it is the second group of recently formed companies that we should be giving a break. Here’s why:
After the 2007 legislation as passed, many of the large national companies still went after large rate increases while the recently formed smaller companies reduced their rates in response to this legislation.
It is the newer companies that are continuing to write new business in Florida while the long established national companies continue to drop and cancel Florida home insurance policies.
The Florida start-up companies are willing to cover more of Florida’s older homes and properties along the coast – risks that the national companies abandoned years ago and continue to shed.
Finally, these newer start up companies deserve a chance to build up their capital reserves and to expand responsibly. These companies are our future if we want to avoid having all Floridians paying massive special assessments that would be required if Citizens Insurance Florida or the Florida Hurricane Catastrophe Fund ever came up short.
Some of these newer companies have started to expand their risk both in Florida and into other states. This risk diversification is a good thing that will reduce the chances of one particular company going broke after a major hurricane.