May 28, 2022

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Why homeowner insurance costs are rising and what you can do

TAMPA, Fla. — If you own a home in the Southern states, especially in Florida, and you’ve seen your homeowner’s insurance rates going way up — you’re not alone. 

“I never want to move again,” said Tampa resident Sarah Loyd-Burger. 


What You Need To Know

  • Homeowner insurance costs rising in Florida
  • Senior insurance consultant Kaitlyn Arrington says costs are increasing 20-35{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}
  • She says some companies are being very picky about which homes they want to insure
  • Arrington suggests to call your agent and find a new insurance company

Last year she and her husband bought their dream home. 

“There’s a lot of transitions and possibilities with this house that we love,” she said.

All was going great until their homeowner’s insurance policy was up for renewal in November 2020, right in the middle of the pandemic.

“I’m in the industry where I see homeowner’s insurance amounts and I’m like, ‘Holy cow my homeowner’s insurance went up almost $1,000.’ When you put that into your escrow and divide that up by the 12 months, that’s a huge hike in your payment, sometimes up to $100 a month,” she explained.

Senior insurance consultant Kaitlyn Arrington said she’s seeing this scenario more and more, over the past year.

“I used to see smaller percentages — a 3-5{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} increase — but this year alone we’re seeing as high as 20-35{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} rate increases,” Arrington said.

She said she’s seen some rates double for no apparent reason and without a claim ever being filed.

And, Arrington said, some companies are being very picky about which homes they want to insure.

“Four companies in Florida are now closed for new business and at least 12 companies have strict underwriting restrictions as far as limits on new business and renewals,” she said.

Companies are looking at the age of roofs, age of homes, and minimum coverage limits. Some companies want a roof to be 10 years or newer.

Arrington said roofing fraud, scammers, and high attorney fees have a lot to do with the decisions. 

If you are hit with a major rate increase, she said to call your agent, especially if you are on a fixed income. 

“It’s not going to hurt you or cost you to re-shop your homeowner’s insurance,” she said.

That’s exactly why Loyd-Burger and her husband worked with Arrington.

“The insurance broker was able to have time to find different companies so we started at least 30 days prior. So we started in the October time period,” Loyd-Burger said.

If you do have an older roof, there are still companies that offer coverage. 

That’s another reason experts are saying that it is important to call your agent to see what different policies might be available.