Florida property owners get cheaper home insurance

Florida property owners will be thanking their lucky stars as officials announce big cuts in home insurance and helps secure the future for the Floridian real estate market.
Florida home owners pay some of highest home insurance premiums in the US & what has made things worse was the anticipated increases this year of up to 80%. This would have left many Florida property owners in a position were they saw insurance as too expensive resulting in more homes becoming uninsured. Overseas property buyers who have been impressed by the value for money achieved when buying property in Florida will also have looked at these additional costs when considering where to buy property abroad.
Land prices are still good value (see land for sale Florida).
In fact Florida housing market is seen by many property investors as a sound place to put their money even when the rest of the states are seeing a slow down in house prices. This is because of the attractions that Florida offers to holidaymakers making investors feel that consistent rental income can be achieved in the sunshine state

Republican Gov. Charlie Crist has made it a priority to force legislators during a seven-day emergency session for substantial rate reductions state-wide, All South Florida legislators voted in favour of the package. Approval came on the final day of the session called to address the state’s property insurance woes.

Charlie Crist ”We are going to lower rates in a meaningful way and it’s going to actually happen,”

Florida property owners will see price reductions when their policies renew in the next several months. Businesses will also see some relief, although not as much. Under the plan approved, rates will fall by allowing private insurers to buy cheaper reinsurance from the state, and requiring they pass along the savings to consumers.

The new legislation will see a wide range of rate cuts customers of the state-run Citizens Property Insurance could see their premiums cut by about 20 percent, while avoiding nearly 80 percent in rate hikes scheduled for this year. State Farm residential policyholders could see an average decrease of 19 percent in their windstorm coverage. Other private insurers could be offering windstorm cuts in excess of 40 percent.

The state will potentially double its Hurricane Catastrophe Fund to $32 billion and will greatly expand the role of Citizens, the state-backed insurer which now has 1.3 million customers.

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