Florida Homeowners Brace for High Insurance Rates and Hurricane Season Challenges
Homeowners in Florida pay private insurers about $6,000 a year, compared to a national average of $1,700 due to the state's susceptibility to hurricane damage and lack of presence of national insurers. Regional and local insurers are struggling, with over half on the state insurance regulator's watch list. The insurance industry blames a legal system that promotes litigation abuse and excess claims, while trial lawyers blame lack of proper regulation on the insurance industry by the state. The Citizens Property Insurance Corp. is an alternative to the private sector, but its premiums are not sufficient to cover the risk it has assumed.