Although a recession typically forces the average American to reduce his or her spending in order to balance tighter budgetary constraints, some insurance companies have decided to increase the cost of coverage for various policy holders, making the current economic recession even more difficult to manage. Specifically, some individuals living in Florida’s Lee County will reportedly be paying an estimated 10 percent more for their home insurance coverage. As residents are outraged by the increase, some leaders are hoping to stand up and fight the unjust rate hikes.
Insurance Issues among Floridians
As states across the nation have reported higher home insurance costs and increases in recent years, many lawmakers are striving to require a state’s official approval and consent before proposed insurance hikes are passed onto policy holders; yet, despite this hope, many Florida home owners may not be able to catch a break from state officials any time soon.
Unfortunately for many, state officials approved recent proposed insurance increases. As a result, any Florida home owner with a specific sate-enforced policy will be forced to pay hundreds of dollars more for their annual coverage benefits. This state-approved increase will result in an average insurance higher cost of 5.4 percent more for Florida home owners, as the impact of these rate hikes have specific implications for select area residents. For example, one of the areas to be most significantly impacted by the rate hikes is Flordia’s Lee County, as approximately 7,000 Lee residents will be forced to pay up to 10 percent more for coverage. Ultimately, the state’s decision to increase rates may impact nearly 1 million home owners across the entire state.
While many insurance companies have been forced to raise rates as their business investments have declined due to recession-related issues, many Floridians are specifically outraged by this most recent insurance increase because the home owners impacted by the hike are those who have invested in Florida’s public insurance option.
“Citizens Property Insurance Corporation,” the public option for individuals without private home insurance coverage, was initially created to help home owners of varying financial backgrounds to receive necessary ownership coverage and benefits. While many policy holders are frustrated and upset, select insurance leaders assert that this increase will be applied to home owners over the course of several years, making the impact of these higher costs less of a struggle in the immediate future.
