2 private Florida insurance companies want to increase premiums by more than 53%

JACKSONVILLE, Fla. – The Florida Office of Insurance Regulation will hold public hearings next week to determine if two private insurance companies can increase their premiums by more than 53%.

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Despite Florida’s legislature doing a tremendous amount of property insurance reform over the past two years, the price to insure a home in Florida remains the highest in the United States. This is after insurance premiums rose 68% from May 2021 to May 2023.

Now two companies are asking the state for more sharp hikes in the amount homeowners pay for insurance every year.

Castle Key Insurance, which is owned by Allstate is requesting the Office of Insurance Regulation approve a 54% average rate increase.

Amica Mutual Insurance Company is also filing for a 54.1% average rate increase.

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Insurance Information Institute spokesman Mark Friedlander said it’s important consumers keep the companies’ requests in perspective because the rate increase would only affect specific dwellings.

“It’s only two companies and it’s only very specific types of policies,” Friedlander said. “Castle key is strictly what are called HO6 individual condo owner policies, not standard home policy so strictly for condo owners. And the Amika Mutual is called dwelling fire policies, those are typically secondary, or vacation homes. They are not primary residences.”

Friedlander said there are multiple reasons for the rate increase proposal including a startling number of severe storm losses across the United States last year. Insurance claims totaled more than $50 billion in 2023, a number higher than ever before, spawned by a myriad of natural disasters including a prolonged wildfire season. Friedlander also said the cost to rebuild a home, condominium, or apartment, has also skyrocketed along with inflation.

“We have calculated an average cumulative replacement cost in the US over the past four years of 55%. That’s nearly four times the US inflation rate, which ran about 15%, cumulatively during the same period,” Friedlander said.

Insurance industry analysts said there’s some good news to report in the Sunshine State including the addition of seven new private insurance companies to Florida’s industry that will make the market more competitive. The state’s insurer of last resort citizens has been successful at decreasing the number of policies it has to limit exposure.

“More than 200,000 citizens policies moved to the private market in the fourth quarter,” Friedlander said. “They’re projecting more than 300,000 additional policies to move in 2024 and what that shows is that private insurers can write risk, once again, something we hadn’t seen in Florida for many years.”

Before Castle Key Insurance and Amica can raise their rates, they are required to hold a public hearing. If you’re impacted, click either of the links below to register for the meeting and attend virtually and provide any public comment or ask questions.

The Amica Mutual Insurance Company rate hearing is on Tues, Feb. 20 from 10:00 a.m. to noon.

The Castle Key Insurance Company rate hearing is on Wed., Feb. 21 from 2 p.m. to 4 p.m.