News Summary
Florida homeowners could see a significant rise in their insurance costs as the Trusted Resource Underwriters Exchange (TRUE) requests a 31% increase in rates for multiperil homeowners’ insurance. This proposed increase comes following a public hearing and could affect tens of thousands of policyholders at their upcoming renewals. TRUE highlights a need for higher rates to cover costs from the last hurricane season and increasing reinsurance expenses, with potential impacts on current average premiums. As the decision looms, policyholders are anxious about the implications for their financial futures.
Florida homeowners may soon see a significant increase in their insurance costs as the Trusted Resource Underwriters Exchange (TRUE) has requested a 31% increase in rates for multiperil homeowners’ insurance. This request was made during a hearing with state regulators on June 17 and is set to impact tens of thousands of policyholders when they renew their insurance this year.
The proposed increase is particularly notable as it marks the first time among Florida’s 87 active property insurers that a rate request has surpassed the 15% threshold that necessitates a public hearing. Currently, Florida homeowners already face some of the highest insurance premiums in the nation, although recent trends indicate that past increases have shown signs of moderation.
TRUE’s chief executive highlighted the company’s financial needs, noting that a nearly 60% rate increase would be needed to adequately cover the rising costs associated with the last hurricane season and increasing reinsurance expenses. If approved, the current average annual premium for TRUE’s multiperil homeowners’ insurance, which stands at $4,309, would escalate to approximately $5,660.
Florida state regulators are expected to make a decision regarding the rate increase following the comment period, which is set to close on July 1. At present, TRUE has fewer than 20,000 policies active in Florida and initiated its operations in the state in 2021, having already experienced two significant management changes since its inception.
Current Landscape of Florida’s Insurance Market
In recent years, Florida’s property insurance market has shown slight or minimal decreases in rates, a trend attributed in part to legal reforms that have lowered litigation incentives. A recent report from S&P Global indicated that the average property insurance increase in Florida was only 1% in 2024, which is the lowest increase reported in any state.
However, the previous management of TRUE reportedly struggled to maintain accurate insurance rates, failing to adjust for the escalating costs linked to hurricanes and the essential backup capital needed for claims. This mismanagement, coupled with the broader struggles of the Florida insurance market, has resulted in ten property insurance company insolvencies in the state between 2019 and 2022.
Local Responses to Increasing Insurance Costs
As insurance costs continue to rise, residents in areas such as Lake Worth Beach are facing ongoing challenges related to flooding and the increasing costs of flood insurance. Palm Beach County is actively implementing a “Watershed Master Plan”, which aims at improving community flood resilience and managing flood risks effectively.
Concerns have also been noted regarding the potential impact of changing floodplain elevations on local agricultural industries, adding another layer of complexity to the insurance challenges faced by Florida homeowners. As the regulatory process unfolds, many policyholders are anxiously awaiting the outcome of TRUE’s rate request and the potential implications for their home insurance premiums.
Deeper Dive: News & Info About This Topic
- Palm Beach Post
- Insurance Journal
- Sun Sentinel
- Newsweek
- MyNews13
- Wikipedia: Insurance in Florida
- Google Search: Florida insurance market
- Google Scholar: Florida property insurance
- Encyclopedia Britannica: Hurricane
- Google News: Florida insurance issues
Author: STAFF HERE JACKSONVILLE WRITER
JACKSONVILLE STAFF WRITER The JACKSONVILLE STAFF WRITER represents the experienced team at HEREJacksonville.com, your go-to source for actionable local news and information in Jacksonville, Duval County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Jacksonville Jazz Festival, Riverside Arts Market, and World of Nations Celebration. Our coverage extends to key organizations like the Jacksonville Chamber of Commerce and JAXUSA Partnership, plus leading businesses in logistics, healthcare, and entertainment that power the local economy such as CSX Corporation, Baptist Health, and VyStar Credit Union. As part of the broader HERE network, including HEREOrlando.com, HEREStPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
