Combatting Rising Insurance Premiums in Florida

 
TALLAHASSEE, Fla. - May 30, 2024 - PRLog -- Disclaimer: This article represents the personal opinions and experiences of the author and is not a qualified legal opinion, legal advice, or professional financial advice. The author is not an expert in homeowners or automotive insurance.

Combatting Rising Insurance Premiums in Florida: A Personal Perspective

As a Florida resident, I've been hit hard by the relentless increase in homeowners and auto insurance premiums. This year, my homeowners insurance company informed me of a 50% increase in my home hazard insurance premium. Faced with this staggering hike, I had to find a solution to keep my insurance affordable. Through some adjustments and strategic changes, I transformed that looming 50% increase into a 10% decrease. Here's how I did it and how you might consider doing the same.

First, I took a hard look at my current insurance policies. For both my homeowners and auto insurance, I examined my coverage amounts and deductibles. I realized that by adjusting these two factors, I could significantly impact my premiums.

Adjusting Coverage Amounts

One of the quickest ways to reduce your insurance premium is by adjusting your coverage amounts. For homeowners insurance, I lowered my dwelling coverage to the state minimum acceptable amount. This meant ensuring that my coverage still met Florida's requirements but didn't over-insure the property. Similarly, for my auto insurance, I opted for the state minimum coverage required for liability.

Increasing Deductibles

The next step was to increase my deductibles. For both my homeowners and auto insurance, I raised my deductibles to the highest levels that I could reasonably afford in the event of a claim. A higher deductible means you will pay more out-of-pocket if you have to file a claim, but it also means lower annual premiums.

The Result

By combining these two strategies—reducing coverage amounts to the minimum acceptable levels and increasing deductibles to the highest levels I could manage—I was able to avoid the 50% increase in my homeowners insurance premium. Instead, I saw a 10% decrease. This strategy not only applied to my homeowners insurance but also resulted in huge savings on my auto insurance.

Why This Works

Insurance premiums are calculated based on the risk the insurer takes on. Lower coverage amounts reduce the insurer's potential payout, and higher deductibles mean you are shouldering more of the initial cost in the event of a claim. Both adjustments lower the insurer's risk, and thus, your premium.

Final Thoughts

This approach worked for me, but it's essential to understand that this strategy involves a trade-off. Lower coverage and higher deductibles mean more financial responsibility in the event of a loss. It's crucial to evaluate your financial situation and risk tolerance before making any changes.

Visit https://www.formamerica.com for additional information on estate planning and life insurance.

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