FORT MYERS, Fla. (WINK)—As hurricane season approaches, first responders are reminding Southwest Florida residents to stock up on essentials like water, food and medication, but insurance is another critical item on the checklist.
WINK News spoke with residents in downtown Fort Myers about the state of Florida’s home insurance market. When asked to grade the market, responses ranged from a C to a D, with many citing high costs and limited benefits as major concerns.
“Too expensive,” said Chris Cosden of Fort Myers.
Florida home insurance premiums have increased 75% over the last four years, higher than anywhere else in the country. Storms, lawsuits and inflation have driven up costs for insurance companies, leaving homeowners like Cosden paying more.
“Well, it certainly hasn’t helped,” Cosden said when asked how rising premiums have affected his finances.
Kevin Garcia of Cape Coral described the process of shopping for insurance as expensive no matter which way he turned. John Master of Fort Myers said he shops and re-shops every year to find a better deal.
However, there are signs the market could be improving. Ratings agency A.M. Best found that Florida insurance companies recorded almost $1 billion in underwriting gains after losing $132 million two years ago.
“What we see is a continuation of favorable trends from last year,” said Chris Draghi, a ratings director at A.M. Best.
Draghi explained that insurance companies are starting to turn a profit after previously losing money in Florida. He said this could lead to more competition and lower rates.
“We haven’t seen that really happen dramatically yet, but I think the expectation is that forward-looking there should be some easing,” Draghi said.
Christine Colleta of Fort Myers said she got a good deal and gave her insurance an A-plus because the company paid her claim. But Michael Hamilton of Fort Myers is still shopping around as the price of paradise remains expensive for some.
When asked how confident he feels about having a good insurance plan this hurricane season, Hamilton said 50/50.