A policyholder with an insurance company that recently put more than a 50% premium rate hike into effect tells us she might be forced out of the state. However, experts say there could soon be some relief.But experts say there could soon be some relief. Castle Key Insurance Company is one of the insurance companies proposing premium hikes of more than 50%. Stephanie Donner, in the Boca Pointe neighborhood of Boca Raton, has a policy with Castle Key Insurance Company and says in November, her condominium insurance rate went from about $800 per year to $1,800 per year.Related: Florida’s property insurance crisis: How did we get here and how do lawmakers fix it?She says no she isn’t sure what to do next.”I’m depressed,” said Donner, who is retired. “I have to go out and get a job, even if it’s part-time… As far as moving out of the state, I have family here, so I don’t know.”Insurance experts say Allstate, which owns Castle Key, filed for the premium increase with the Florida Office of Insurance Regulation last year. The Florida Office of Insurance Regulation recently held a public hearing about Castle Key’s rate hike. Insurance experts say while regulators are looking at the price increase, they likely won’t change the rate much, if at all.The Florida spokesman for the Insurance Information Institute, Mark Friedlander, says the Florida Office of Insurance Regulation says while regulators could issue credits to policyholders if they find Castle Key’s rate increase wasn’t made using correct data, he says that occurrence is rare and probably would not happen.”Every dollar I get in is going towards bills. I can’t enjoy my life. I don’t take my car out of my garage as much as I did because I don’t want to use the gas,” said Donner.Friedlander says recent hurricanes, higher reconstruction costs, the higher rates caused by reinsurance companies and the staggering number of lawsuits against insurance companies in Florida are some of the reasons prices keep rising.Related: Experts say Citizens Insurance’s plan of transferring policies to private insurers is in right direction”Hurricane Ian is one of the largest loss events in U.S. insurance history for a natural disaster. More than $50 billion in insured losses is expected for Ian. When you see that level of storm activity, it’s going to drive higher rates,” said Friedlander.Friedlander also says 71% of all lawsuits filed against property insurance companies happened in Florida in 2022. He also said Florida was where 15% of property insurance claims were filed that year as well.However, Friedlander says relief could be on the way.”There are better days ahead for Florida homeowners,” said Friedlander.He says seven new insurance companies have been approved to write homeowners’ policies in Florida this year.”Once all these companies are available, which should be in the next few months, consumers will be able to shop their coverage and get competitive quotes,” said Friedlander.Related: New companies to begin writing homeowners insurance policies in FloridaCastle Key Insurance Company says it’s taking public comment until March 6 regarding the rate hikes. It’s unclear when the Florida Office of Insurance Regulation will make its final decision regarding the price increase.Amica Mutual Insurance is also seeking a premium hike of more than 50%. The company sent this statement to WPBF 25 News:”Amica is requesting this rate increase on our dwelling policy line of business, which are policies that often cover secondary residences or rental properties. This rate change specifically does not apply to standard home policies. The rate increase is necessary to restore pricing adequacy for this product. Amica remains committed to providing excellent products and services to our customers at competitive rates.”WPBF 25 News is awaiting a response from Castle Key Insurance Company.Top headlinesStay up-to-date: The latest headlines and weather from WPBF 25 Get the latest news updates with the WPBF 25 News app. You can download it here.
A policyholder with an insurance company that recently put more than a 50% premium rate hike into effect tells us she might be forced out of the state.
However, experts say there could soon be some relief.
But experts say there could soon be some relief.
Castle Key Insurance Company is one of the insurance companies proposing premium hikes of more than 50%.
Stephanie Donner, in the Boca Pointe neighborhood of Boca Raton, has a policy with Castle Key Insurance Company and says in November, her condominium insurance rate went from about $800 per year to $1,800 per year.
Related: Florida’s property insurance crisis: How did we get here and how do lawmakers fix it?
She says no she isn’t sure what to do next.
“I’m depressed,” said Donner, who is retired. “I have to go out and get a job, even if it’s part-time… As far as moving out of the state, I have family here, so I don’t know.”
Insurance experts say Allstate, which owns Castle Key, filed for the premium increase with the Florida Office of Insurance Regulation last year.
The Florida Office of Insurance Regulation recently held a public hearing about Castle Key’s rate hike. Insurance experts say while regulators are looking at the price increase, they likely won’t change the rate much, if at all.
The Florida spokesman for the Insurance Information Institute, Mark Friedlander, says the Florida Office of Insurance Regulation says while regulators could issue credits to policyholders if they find Castle Key’s rate increase wasn’t made using correct data, he says that occurrence is rare and probably would not happen.
“Every dollar I get in is going towards bills. I can’t enjoy my life. I don’t take my car out of my garage as much as I did because I don’t want to use the gas,” said Donner.
Friedlander says recent hurricanes, higher reconstruction costs, the higher rates caused by reinsurance companies and the staggering number of lawsuits against insurance companies in Florida are some of the reasons prices keep rising.
Related: Experts say Citizens Insurance’s plan of transferring policies to private insurers is in right direction
“Hurricane Ian is one of the largest loss events in U.S. insurance history for a natural disaster. More than $50 billion in insured losses is expected for Ian. When you see that level of storm activity, it’s going to drive higher rates,” said Friedlander.
Friedlander also says 71% of all lawsuits filed against property insurance companies happened in Florida in 2022. He also said Florida was where 15% of property insurance claims were filed that year as well.
However, Friedlander says relief could be on the way.
“There are better days ahead for Florida homeowners,” said Friedlander.
He says seven new insurance companies have been approved to write homeowners’ policies in Florida this year.
“Once all these companies are available, which should be in the next few months, consumers will be able to shop their coverage and get competitive quotes,” said Friedlander.
Related: New companies to begin writing homeowners insurance policies in Florida
Castle Key Insurance Company says it’s taking public comment until March 6 regarding the rate hikes. It’s unclear when the Florida Office of Insurance Regulation will make its final decision regarding the price increase.
Amica Mutual Insurance is also seeking a premium hike of more than 50%. The company sent this statement to WPBF 25 News:
“Amica is requesting this rate increase on our dwelling policy line of business, which are policies that often cover secondary residences or rental properties. This rate change specifically does not apply to standard home policies. The rate increase is necessary to restore pricing adequacy for this product. Amica remains committed to providing excellent products and services to our customers at competitive rates.”
WPBF 25 News is awaiting a response from Castle Key Insurance Company.
Top headlines
Stay up-to-date: The latest headlines and weather from WPBF 25
Get the latest news updates with the WPBF 25 News app. You can download it here.
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.