Florida residents the most dissatisfied home insurance customers: Clearsurance.com

Florida has been ranked number one, compared to any other US state, in homeowners insurance dissatisfaction, a Clearsurance.com report has revealed.

There are several issues that Florida homeowners encounter that make their home insurance situation more challenging than in other states, with hurricanes being one of the most significant risk factors.

According to Clearsurance.com, since Hurricane Andrew, the home insurance market in the state went from 6% local providers to 70% local providers.

Many national home insurance providers have pulled out of the Florida market because of the high risk of claims. Moreover, a number of home insurance providers in the state have strict restrictions for the age of roofs that they will cover – although recent legislation has addressed this issue.

Natural disasters impact regions, not just singular homes, analysts state. In the case of Florida, when a hurricane happens residents expect damage to their homes, but as it impacts the whole area, they often have to wait months before their claims are approved and reconstruction can begin.

“This leads to frustration and dissatisfaction,” Clearsurance.com notes. “When a single home is impacted by a storm, rebuilding can be expedited, but when an entire town is hit, resources are stretched thin, and the timeline stretches.”

On top of this, Florida residents have to also face insurance fraud, something that contributes to high insurance rates.

“Florida residents often fall victim to insurance fraud or predatory practices. As a result, insurers pay far more than the national average in claims. They must then charge homeowners higher premiums to remain solvent,” the report stated. “Recent legislation seeks to address this issue, as well.”

The homeowners insurance market in Florida is is grappling with a series of formidable challenges as the 2023 Atlantic hurricane season unfolds, something that contributes to all the issues faced by customers in the state.

These include, according to a Moody’s report, elevated catastrophe exposures, dwindling insurance capacity, surging total insured values, and more expensive reinsurance coverage,

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