Property Damage

The real reason insurance premiums are going up in Florida. Hint: you’ve been lied to.

Why are premiums going up in Florida? Because of reinsurance.


Florida’s property insurance crisis is not your fault, but you’re paying for it.

Reinsurance poses challenges for insurance companies which may lead to even higher premiums down the road.

What is reinsurance, and why do insurance companies raise our premiums because of it? 

Reinsurance is insurance for insurance companies to mitigate their risk. However, the reinsurance market is unregulated, so prices, availability, and almost anything pertaining to reinsurance can quickly change with little or no warning. Any costs or additional expenses the insurance companies incur are typically passed onto policyholders in the form of higher premiums.  

Insurance companies like to avoid disclosing how they manage their businesses, how costs are handled, and how prices are determined. What they do like to promote narratives of “greedy lawyers” or “roof scams” to distract policyholders and the general public from the truth of how much money they are actually making and how many policyholders are put into uncomfortable positions because of actions taken by them.

Insurance companies spend millions each year pushing a “poor us” narrative through the media, saying property damage lawyers are responsible for the increase in premiums. They state the added costs of litigation have weighed on their bottom line, and they cannot continue to operate profitably with the current uptick in litigation cases.  The truth is they simply want to continue operating their businesses as profitable as possible and that means transferring costs to policyholders, and at times cutting corners.

Insurance companies are seeing profit margins shrink and like any business they are trying to fix that. 

Our experience has been contradictory to what insurance companies claim is occurring. JT Law Firm will always put clients first, and our clients who come to us with actual damage covered under their policy. Yet, the insurance company either denies their claim or offers them inadequate compensation to repair the damage the property sustained. Some of these cases are clear enough that once the case makes it to court, the evidence is overwhelming, and the case is promptly resolved in favor of our client. However, cases with overwhelming evidence should never make it to court – the insurance companies should uphold the policies they issue and properly compensate customers for covered damage without the need of formal litigation. 

What can you do about rising insurance costs?

If rising insurance costs have you worried, there are actions you can take to help influence the price of your insurance in the future.  The best thing you can do is write your local representatives and tell them how you feel and the impact that rising insurance costs has had on you and your family. Second, you can review your policy and see what you can do within reason to reduce costs.

Have questions?

Speak with one of our property claim attorneys today at (855) 585-2997 or by sending us a message here. 

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