It’s a statewide problem. Florida’s property owners already pay triple the national average for property (homeowner’s) insurance. Now, the Insurance Information Institute expects Floridians’ premiums to spike by 33 percent this year, and that’s just the average rate increase. Some homeowners have seen quotes 10 times higher than their current rate, the institute says.
This turmoil has ratcheted up the pressure on state-backed Citizens Property Insurance Corp., the insurer of last resort, as we enter this year’s hurricane season. Earlier this month, the state approved Citizens’ plan to shed 25,000 policies to alleviate some of the strain. This likely will put more stress on private insurers, inflating prices even further.
For prospective property buyers, rising insurance prices — just like rising interest rates — can be deal breakers when evaluating a purchase. After analyzing the cost of insurance, some would-be buyers quickly discover they can no longer afford the property.
Florida’s insurance crisis is much too complex for any one company or industry to solve overnight. Despite the current landscape, property buyers can sometimes find lower insurance premiums by shopping proactively. For starters, buyers can look for properties that cost less to insure. As an example, new construction buildings cost less to insure. Properties located in areas less prone to natural disasters cost less, too.
Finally, buyers can lower their acquisition costs by saving as much as possible on other closing costs, such as title insurance. At Butler Title, we strive to help our clients’ dreams of acquiring property become a reality. It’s what we do. By extending the Butler Rebate to every client on every deal, we make closings more affordable. Period.
Contact us today to learn more about how you can save money on your next closing.
Butler Title is a full-service, attorney owned and operated title insurance agency. We keep it simple and focus on what we do best: real estate closings. From first-time buyers to local moguls, BT provides an industry-leading fee structure and unparalleled experience.
P: 954.616.8735 F: 954.206.1097