Florida homeowners dropping their insurance in face of high premiums
MIAMI – Skyrocketing property insurance costs are pushing some Florida residents to drop their coverage altogether.
"We see more people throughout the state of Florida choosing a risky option of going from being insured to self-insuring," said Mark Friedlander, with the Insurance Information Institute.
According to a Florida Tax Watch report Friday, Florida's average annual premium nearly triples the national average, and the rates are even higher in South Florida.
Friedlander said a recent study showed 15% to 20% of Floridians choose to drop their insurance.
Matt Friedman, who has had property insurance while living in his Coral Gables home for 17 years, is wondering if he needs to change course.
"We're getting to a point now where it's really math," Friedman said.
Even with upgrades he's made to reduce insurance premium costs, his annual premium is north of $10,000.
"I know a lot of people have seen their premiums go up more," added Friedman.
One of them is a nearby neighbor, who told CBS News Miami off camera that her annual premium is more than $20,000. She's considering going without insurance.
Friedlander, however, said that most homeowners can't afford to pay for a catastrophic loss of their property out of pocket. He advises that people stay insured, even with the higher insurance costs in South Florida — "sometimes two to three times what we're seeing in other parts of the state."
Friedlander believes the big issue is that properties by the coast or at higher risk of severe weather, like in South Florida, tend to have more surplus line insurers — companies that write high-risk policies.
Those surplus line insurers "don't have to follow the same regulations as the standard insurers, meaning they don't have to get the rates approved," said Friedlander.
Friedlander said eight new companies entered the market this year, nine companies filed for rate decreases and 10 requested to stay the same.
"It is a great turnaround of the market," said Friedlander.
But some local homeowners tell us it's not enough to make things better for them.