PINELLAS COUNTY, Fla. — Rate hikes, lack of competition between insurance companies, and major storms are driving up the cost of insurance in Florida.
State leaders are giving an update on insurance rates and what's being done to drive down the massive rate hikes.
State leaders held a round table meeting on Thursday to discuss the issues.
"That built up over time. The deterioration of the marketplace and the rebuilding of the marketplace is going to take time," said Florida Commissioner of Insurance Regulation Mike Yaworski.
Kassy Brewer said she and her husband bought their dream home in Tampa Bay 11 years ago, but the cost of living has made keeping their home difficult.
"We went from $5,000 a year in insurance to $14,000 within five years. It's the inflation that we are seeing on gas and on groceries, but it does draw a line with a lot of people who are on a fixed income that do live in the area that I live in, and now can't afford to live there because of the property insurance increase. They are having to sell that part of their paradise," said Brewer.
She said she's looked for other options but is losing hope with the lack of available insurance companies in Florida.
"The first thing you want to do is let's sell. 'We aren't going to live here anymore'...but reality hits, and you realize how much you love it," said Brewer.
According to Yaworski, the average cost of insurance in Florida is $3,400 a year, and while rates are increasing, he says they will stabilize eventually.
"Ultimately, we feel relatively good about the insurance industry's ability to sustain impacts from natural catastrophes," said Yaworski.
State officials said affordability, availability, and reliability are the biggest concerns.
Now, leaders say nine insurance companies are entering Florida, which will create a more competitive market and lower costs.
"Carriers are doing new rate filings that are dropping from what they had been historically," said Jimmy Patronis, Florida's Chief Financial Officer.
Even though state leaders said some changes and improvements could be coming to the state regarding insurance, residents said it might not be soon enough.
"It's difficult. I just can't imagine those who are on a really strict income, how much its affecting their lives," said Brewer. "If it goes up any more, honestly, I don't think we can afford to live there."
Patronis said residents can apply for up to $10,000 in grant money to harden or make storm improvements on their homes ahead of hurricane season.
He said replacing windows and fixing roofs can also lower insurance premiums.
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