MIAMI – So, how will Idalia affect property insurance in South Florida?

“It’s definitely going to affect us,” said Humberto Hernandez an adjustor from National Claims Adjustor. He represents the property owner who has suffered a loss and is filing a claim to get reimbursed for the cost of repairs.  

He says claims litigation is not the major factor for the increase in policy premiums, according to him that is what insurance uses to charge more.

“The industry has been taken over by companies’ greed, they want to make more money and they don’t want to lose,” said Hernandez, adding “Because they have reinsurance policies, they pass on the loss to consumers at the end of the day.”

CBS News Miami asked Hernandez about possible options for the average homeowner, and he suggested trying to find a new insurance company (if already paying too much.)  

“Try to negotiate a better or economic policy than the one they can sell you, usually the first year of that new company the policy comes at a decent price.” 

According to Hernandez, in the past the Florida legislature and governors have passed laws freezing – for a couple of years – increases on Citizen insurance state policy, after a hurricane.

“I think that we’ve done as much as we can do,” told CBS News Miami Christopher Benjamin, a Democrat legislator in Tallahassee for South Florida district 107.

“We are a Republican legislature and so there’s a big emphasis on the free market, which dictates our insurance up and down; that’s why we got rid of the attorney’s fees and litigation costs,” said Benjamin. 

Also, according to legislator Benjamin, part of the problem – of high premiums – many insurance companies were not obligated to get reinsurance to make the state attractive to other insurance carriers.

As far as opting for not having home insurance, adjuster Hernandez says that is a luxury only limited to those who don’t have a mortgage payment. 

“If we decide to not pay that policy, the bank imposes a policy upon our property that costs about five times the normal premium of our insurance policy.”