TAMPA, Fla. — Florida residents have seen the devastation firsthand with hurricanes.
So, the first thought for many after seeing homes destroyed by the California wildfires is the rebuilding process and then the fall out of insurance.
According to industry leaders, California is now dealing with their own insurance crisis as Florida is coming out of theirs.
But with the significant losses insurance companies are facing in California, the question is: Could that translate to higher premiums for Floridians?
ABC Action News anchor Nadeen Yanes asked that question directly to Mark Friedlander with the Insurance Information Institute.
“I think the biggest question, especially for Floridians, is, can our rates be impacted by all of the devastation in California?” asked Yanes.
“Impacts beyond the state of California are virtually zero. The losses in one state do not impact coverage or cost in another state. Every state rate is risk individually. For example, you could not go before a regulator in Florida and say, we had major losses in California. We need to make up for them in Florida that would not be allowed,” replied Mark Friedlander.
It comes as Friedlander says insurance is going up in other states.
Insurers in North Carolina asked for a 42% increase, but state regulators there only approved a 7.5% increase.
Illinois is seeing another 14% rise in rates.
Meanwhile, Florida is holding stable, with the average homeowner’s premium in 2024 at just over $3700. That’s only $100 more that the state average last year.
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