Two private Florida home insurance companies seek rate hikes over 50%

WEST PALM BEACH, Fla. (CBS12) — Florida home insurance is already some of the most expensive in the nation, thanks in large part to hurricanes.

Now, two of the private insurers still operating in the state are looking to raise their rates – by more than 50 percent a year.

Amica Mutual Insurance and Castle Key Indemnity are asking for these rate hikes for policies covering condominiums and secondary residences.

Both companies saying they need to make up significant losses due to recent storms. Amica Mutual is asking for a 54% hike, and Castle Key is asking for a 53% hike.

“It may have surprised some people because we haven’t seen these rates increase recently,” said Mark Friedlander, spokesperson for the Insurance Information Institute.

Friedlander added the request is due to the cost of storm losses and higher construction and materials costs.

“A lot of the damage from those hurricanes was basically oceanside condo structures. Those saw a lot of damage either on the Atlantic side or the Gulf side,” said Friedlander.

Friedlander also pointed out these companies aren’t outliers – other insurers already got double, even triple-digit, increases last year.

His hope is this year we could see some stabilization and maybe even more competitive prices for homeowners.

“We now have seven new home insurers that have been approved by the regulator to write business in Florida this year.”

Florida’s Office of Insurance Regulation has scheduled a virtual public meeting for these rate hike requests.

Friedlander expects the OIR will likely approve the rate hike requests.