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Understanding the Complexities of Insurance in Tampa, Florida

Living in Tampa, Florida can be a dream come true for many people, but it can also come with a lot of insurance-related questions. The truth is that the answer to whether or not it’s tricky to get insurance in Tampa and the rest of Florida is a bit complicated. There are a few different things you need to know to navigate this issue, and in this blog post, we will cover everything you need to know.

The State of Insurance in Tampa, Florida

First and foremost, it’s essential to understand that insurance is a necessary topic to cover when living in Florida. You’ve probably seen numerous videos and articles about it, and for a good reason. Insurance companies in the area have been known to lose money due to the various issues that can arise, such as storms, scams, and predatory roofing.

One of the biggest insurance companies in the state, Citizens, is state-subsidized, and it has been losing money for years. They have recently made changes that could affect the policies of many people living in Tampa and the rest of Florida. For instance, they are requiring flood insurance for those living in flood zones insured by Citizens, even if they don’t necessarily need it. This change may prompt people to leave Citizens for more expensive options, which is something the company is hoping for.

Understanding Flood Insurance

Flood insurance is crucial for people living in flood zones. However, it’s important to note that it’s not required for all Florida residents. If you live in a flood zone, you likely already have flood insurance. Still, the new requirement from Citizens could affect those who live in a flood zone but don’t necessarily need flood coverage.

Citizens is also making it mandatory for policyholders to get a competing quote when they renew their policy. If the competing quote is within a certain margin (20-30%) of their premium, they must switch to that company instead of staying with Citizens. This change could cause citizens to lose customers and force them to more expensive options.

Understanding Hurricane Coverage

Hurricane coverage and flood insurance are different things. While flood insurance covers water rising from the ground, hurricane coverage covers damages caused by wind during a hurricane, such as trees falling, objects flying, and debris damaging property. In Florida, most policies have wind coverage, and some have extended wind coverage. 

It’s essential to know that when a storm is named by the National Weather Service, insurance companies handle claims differently. The claim process and deductible may change, depending on the circumstances of the storm.

Final Thoughts

Insurance can be a complicated issue, especially in a place like Florida. It’s crucial to understand the different types of coverage available and the changes happening in the insurance industry to protect your property and finances. While the rate increase may be unwelcome news, it’s an opportunity to review your policy and explore different options to ensure that you’re getting the coverage you need at the best possible price.If you need more information or assistance, don’t hesitate to reach out to a trusted real estate agent in Tampa, Florida, who can guide you through this process.

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