Inflation and Property Insurance

Florida homeowners have already felt constraint by rising costs of property insurance.

The average cost of property insurance has risen to $7,000 in Miami-Dade County, nearly $6,000 in Broward County, and just over $5,000 in Palm Beach County. Many homeowners may be worried about inflation further raising their rates.

Unfortunately, with the increased cost of labor and materials, insurance rates are likely to begin to further rise. Even with the recent changes to Florida’s property insurance law, AM Best has predicted there will be no relief for homeowners in the foreseeable future.

Additionally, with homes inflating nearly 30% in the past year, you should also be aware of your “Coverage A” limitations. Coverage A is the maximum amount an insurance company will pay to cover your home, but this amount may no longer reflect the value of your property. It may be a good time to review your policy limits, and potentially increase them to reflect the actual value of your home.

This article is not intended to be legal advice, nor create an attorney-client relationship.