There were reports previously that indicated rates to go as high as 25 percent. However, Heritage Property & Casualty can be at ease as insurance rates aren’t increasing.
On this Tuesday, the company disavowed rate increase which would have escalated the price of insuring a single family household by an average of 14.9 percent statewide, also, 21.4 percent in Fort Lauderdale area and 25 percent in the coastal areas of Broward and Palm Beach counties. This increase would have been implemented as of September 1st.
The president of Heritage, Richard Widdicombe said in an interview on Wednesday that due to disagreement with the state office of insurance regulation over policy revisions, an agreement could not be met.
However, dialogues are in process and it is expected that an another rate increase request would be submitted by the end of this year. It won’t be 14.9 percent, but hopefully around 6 percent to 7 percent statewide.
Apart of Heritage, various other companies have urged rate increases in South Florida this year, one of them being Citizens Insurance. Citizens Insurance is aiming for rates hikes averaging 8.9 percent upwards to 9.1 percent in Broward, Miami Dade and Palm Beach. However, dissimilar to Heritage, many companies urged increases well below 10 percent.
The proposed rate increases are due to the increased losses on water damage. Homeowners make unnecessary claims hence resulting in repairs which have increased the costs of insurance companies.
In a turn of events, Widdicombe said on Wednesday, Heritage won’t be submitting another request for rate increase until the company comes to an agreement with the state.
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