ABC INSURANCE GROUP

We offer a range of insurance options including home, flood, auto, motorcycle, and recreational

Insurance rates—especially for homeowners and property insurance—keep increasing in Florida due to a perfect storm of economic, legal, environmental, and market-related factors. Here's a breakdown of the main reasons why:

Frequent and Severe Natural Disasters

• Florida is highly exposed to hurricanes, floods, and windstorms, especially along the coast.
• Recent years have seen increased storm activity and intensity (e.g., Hurricane Ian in 2022).
• These disasters lead to huge insured losses, forcing insurers to raise premiums to cover current and future risks.

Litigation Abuse & Fraud

• Florida has had a disproportionate share of property insurance lawsuits—over 75% of the nation’s homeowners insurance litigation despite having only 8% of the policies.
• Inflated roof claims, and lawsuit mills created massive legal costs for insurers.
• This made Florida one of the most litigious states for property claims.

Insurer Insolvencies and Market Instability

• Several insurance companies have gone insolvent or left the Florida market due to mounting losses and legal expenses.
• Fewer insurers means less competition and more risk pooling, driving rates up for everyone.

Reinsurance Costs Are Soaring

• Insurers buy reinsurance (insurance for insurance companies) to protect against catastrophic losses.
• Due to the high risk in Florida, reinsurance premiums have skyrocketed—and those costs get passed to policyholders.

Construction and Repair Cost Inflation

• Rising costs for labor, materials, and supply chain delays have made it more expensive to rebuild homes after a loss.
• Insurers must increase coverage limits and premiums to reflect these higher replacement costs.

Regulatory and Legal Environment

• Although recent reforms (like those passed in 2022 and 2023) aim to curb litigation and fraud, their effects take time to trickle down into pricing.
• Meanwhile, insurers are still pricing for prior years’ losses and uncertainty.
• Citizens Property Insurance Is Overburdened
• Citizens, the state-run "insurer of last resort," has grown beyond 1.3 million policies due to private insurers exiting.
• This creates risk concentration, and the state may assess fees or surcharges on all policyholders if Citizens can't pay claims after a major event.

Please contact the claims department for your specific insurance carrier directly.  All claims are handled by the carrier themselves.  Licensed insurance agents can bind and manage policies only.

In the state of Florida, a licensed Property and Casualty (P&C) insurance agent is authorized to sell, solicit, and negotiate a broad range of property and casualty insurance products to individuals. This includes any coverage that protects against financial loss related to property damage or legal liability. 

 What a P&C Agent in Florida Can Do:

They can sell and provide service for policies such as (but not limited to):

• Homeowners Insurance
• Auto Insurance
• Flood Insurance (typically through the NFIP, if separately appointed)
• Boat and Recreational Vehicle Insurance
   

They can:

• Advise clients on coverage options and policy limits.
• Explain terms, conditions, and exclusions
• Recommend suitable insurance products based on a client’s needs and risk profile.
   

• Bind policies on behalf of insurers they are appointed with.
• Issue certificates of insurance (common in commercial lines).
   

• Help clients understand the claims process
• Serve as an intermediary between the client and the insurance carrier.
   

• Review client policies periodically to ensure adequate coverage.
• Make updates or renew policies as needed.

In Florida, a licensed Property & Casualty (P&C) insurance agent—even with full authority—cannot do certain things that fall outside their legal scope or require additional licensure. Here’s a detailed list of what a P&C agent CANNOT do in Florida:

Sell Life, Health, or Annuity Products

     Cannot sell or advise on:

• Life insurance
• Health insurance
• Annuities
• Disability insurance
• Long-term care insurance

   These require a Life & Health (2-15) or other appropriate license.

Adjust Claims (Unless Also Licensed as an Adjuster)

• A P&C agent cannot act as a public or independent adjuster unless they have a separate adjuster license (e.g., 6-20 or 3-20).
• They may assist clients with the claims process but cannot negotiate or settle claims on behalf of the insurer or the insured.

Charge Unauthorized Fees

• Agents cannot charge additional or hidden fees outside of those approved by the Florida Office of Insurance Regulation.
• They cannot receive referral fees or kickbacks not disclosed or permitted under state law.

They must adhere to Florida Department of Financial Services (DFS) rules, including continuing education and ethical conduct.