Property Insurance “Shrinkflation”

property insurance premiums

Property insurance premiums go up, but your coverage goes down

This is what’s wrong with our state’s insurance industry, every time the carriers try to make more profits they cry out to our state legislators about fraud, attorney’s fees, public adjusters, climate change, you name it they’ve tried it… just look at the chart below.

Shrinkflation property insurance premiums go up but your coverage goes down

Here is an excerpt from a post published by Florida Association of Public Insurance Adjusters (FAPIA):

Did you know that while your property insurance rates continue to increase, the coverage for losses available in your insurance policy continues to decrease? If removing coverage from policies was the answer, why do rates continue to increase so dramatically?

There has to be a better way to address the rising costs of reinsurance, the rising cost of construction labor and materials and targeting bad actors engaged in unlicensed activity and fraud.

Ask your elected officials to keep this in mind as they “do something” during the special session on insurance next week. Rather than “do something” that will hurt policyholders, we propose real solutions:

Increase access to the Hurricane Cat Fund to lower the rate pressure on policyholders and insurers.

Enforce already existing strong anti-fraud legislation on the books before creating any new legislation that won’t be enforced.

Don’t weaken Florida homes by weakening the building code.

Ask insurers to pay fairly and quickly when a legitimate claim is made so you don’t have to resort to taking your insurance company to court to get paid what you are already rightfully due.

Allow company adjusters to actually adjust a claim rather than call them “task adjusters” and only let them take care of one task at a time. This is time consuming and results in delayed claims which incentivize litigation.

Year after year they raise your property insurance premiums and take away a little more coverage every time. When will our elected officials realize that they pay for insurance too and at some point they will be out of office?

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