Florida renters squeezed by housing costs will soon get relief on one monthly bill. Florida Insurance Commissioner Mike Yaworsky has approved a sizable cut to renters insurance rates for roughly 121,898 policy exposures, effective Oct. 11.
Here's what to know
In a filing covered by the Tampa Free Press, American Modern Home Insurance Company received approval to lower average rates by 12.8% on its HO-4 renters policies.
Beginning Oct. 11, the change will apply to both newly written policies and existing policies when they renew. That means current customers will likely see lower rates on different timelines, depending on their renewal dates.
American Modern has its largest concentration of this business in Orange and Broward counties, where average rate decreases are projected at 13.4% and 13.8%. More broadly, renters in more than 30 Florida counties are expected to see average cuts ranging from 13.1% to 13.9%, so the exact savings will vary by location.
Yaworsky framed the move as part of a broader push to reduce insurance costs, saying, "The Office of Insurance Regulation is approving major rate decreases across the board, including decreases in insurance for our Florida renters. We are working hard to get rates down for all policies, and we will continue to reach out to companies and ask them to do more. Stay tuned!"
More background
An HO-4 policy, better known as renters insurance, is meant for tenants living in apartments, single-family rental homes, or condominiums.
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This coverage generally protects a renter's belongings when covered events such as fire, theft, or vandalism cause loss or damage. It can also include liability coverage if someone is injured in the rental or if the tenant accidentally damages another person's property.
Coverage does not extend to the building itself. The structure is still the responsibility of the landlord or property owner, which is why renters and owners need separate insurance policies even when they share the same address.
Where can I learn more?
This rate cut is one piece of a much bigger insurance story in Florida and beyond. The articles below look at policy drops, rate disputes, and the climate pressures reshaping home coverage.
• In North Carolina, regulators reached a home insurance settlement after a contentious rate fight.
• Across the country, severe weather is making it increasingly not worth the risk for insurers.
• In New Jersey, rising sea levels are driving insurance losses and shrinking homeowners' options.
• Across the market, major carriers are dropping insurance coverage for younger homeowners at notable rates.
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