JACKSONVILLE, Fla. — Ask anyone in the industry, and they'll tell you there's an insurance crisis in Florida.
"We are seeing premium increase by 50 percent of what people paid last year in some instances it's even 100 percent." said Isaiah Rumlin, owner of Rumlin Insurance Agency.
Fitch ratings, an American credit rating agency, says it expects double-digit percentage premium rate rises for property catastrophe cover in 2023.
It says a high number of claims and the severity of the claims have attributed to the rise.
"Hurricane Ian is likely to have caused between $35 billion and $55 billion of insured claims, making it one of the costliest natural catastrophe events ever." the study said.
The rising premium costs have also impacted insurance companies who have had to tap into their reinsurance reserve funds. As a result, the cost of reinsurance has shot up as well.
Duval County Property Appraiser Jerry Holland says the insurance crisis, if it continues, could impact your future property value.
"Where our most valued properties are which is oceanfront, riverfront, waterfront properties," Holland said. "Those will be cautioned in a sense of people will be looking at those and saying do I want to invest where I can't get insured do I want to invest where the insurance is more than I can afford? That will impact again seeing those kinds of projects build in the future if they don't think they're affordable."
The state legislature is set to discuss the insurance crisis during a special session next week.
Chip Merlin, an attorney at the Merlin Group, expects legislation to be passed to help alleviate the crisis. He said it's going to be hard for lawmakers to address rising rates attributed to Hurricanes such as Ian and Nicole. But, added the legislature can address another problem that he says is driving up rates.
Merlin, who is also a member of the Florida Justice Association, said contractors have been approaching homeowners saying their roof needs to be replaced. The homeowner then gives the contractor control over the claim through something called an assignment of benefits (AOB).
It's led to several false insurance claims, which has driven up insurance prices.
"The state leaders have made it very clear that that's (AOB) on the chopping block while they've made regulations to make it more difficult for roofing contractors to get those AOB's I believe that they might do what they've done in other states and completely eliminate the ability of roofing contractors and other restoration contractors to get assignment of benefits following any kind of property damage loss that comes about." Merlin said.
The Florida Justice Association says it expects the legislature to pass a bill next week.