Florida Home Insurance Rates Could Spike Over 50%
Floridians have been hit hard over the past few years with unexpected growth and rising costs. As if insurance rates weren’t already high enough, Floridians may soon see even higher premiums. Two Florida insurance companies may raise rates by over 50%.
Earlier this year, we reported on a study from Bankrate that compared annual average car insurance rates across the country with Florida being the highest paying state. Age, location, driving history and more all factor into play.
Now, Castle Key Indemnity Company and Amica Mutual Insurance are looking to raise rates for homeowners by over 50%. Condo owners could see a 53.5% increase through Castle Key Indemnity. This provider is owned by Allstate.
Amica Mutual Insurance handles various types of properties like vacation homes. They propose a 54.1% increase in premiums.
Why are rates jumping in Florida?
With the most recent Hurricane Ian and Idalia that swept through Florida, insurance companies are paying out more than ever. An Allstate spokesperson explained, “More frequent, severe weather, higher repair costs and elevated reinsurance premiums have caused rates to rise in many states, including Florida.”
Castle Key says these rate hikes are set to help policy holders in the long run. They explain to combat rising costs of reliable protection, increases are necessary.
Another reason for rising rates is inflation. Former State Senator Jeff Brandes said, “The challenge we have now is, inflation is here and inflation wasn’t a big deal two or three years ago. It’s definitely a major issue today and the reinsurance prices have continued to be higher throughout the country.”
We’ve seen gas prices, food, goods, and just about everything else rise in cost due to inflation over the past few years without any signs of slowing down. The Insurance Information Institute says that if policy rates don’t rise as inflation rises, this could lead to insolvency.
How can you lower your home insurance rates?
If you’re looking to lower your premium in Florida there’s a few ways to do that. Reinforcing your roofing with higher grade materials to withstand hail, high winds and hurricane like conditions. When your rates do rise, call your agent to see if you qualify for discounts by taking steps to make your home safer against inclement weather.
To learn more about what you can do to combat rising premiums for home insurance, click here.
Tax Deductions and Credits That Could Save You Big
Standard deduction amounts
The standard deduction for 2023 is $13,850 for single or married filing separately; $27,700 for married couples filing jointly or qualifying surviving spouse; and $20,800 for head of household. “If you’re married filing separately, you can’t take the standard deduction if your spouse itemizes. You must both choose the same method,” the IRS says.
To find the standard deduction if you’re over 65 or blind, go here. To find the standard deduction if you’re a dependent on someone else’s tax return, go here.
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Deductible expenses whether you take the standard deduction or itemize
According to the IRS, you can deduct these expenses whether you take the standard deduction or itemize:
Alimony payments
Business use of your car
Business use of your home
Money you put in an IRA
Money you put in health savings accounts
Penalties on early withdrawals from savings
Student loan interest
Teacher expenses
For some military, government, self-employed and people with disabilities: work-related education expenses
For military servicemembers: moving expenses
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Deductible expenses if you itemize
According to the IRS, you can deduct these expenses if you itemize:
Bad debts
Canceled debt on home
Capital losses
Donations to charity
Gains from sale of your home
Gambling losses
Home mortgage interest
Income, sales, real estate and personal property taxes
Losses from disasters and theft
Medical and dental expenses over 7.5% of your adjusted gross income
Miscellaneous itemized deductions
Opportunity zone investment
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Frequently asked questions
Tax season can be a confusing time. There are lots of bits and piece that you have to put together. That said, the IRS has a very helpful page with frequently asked questions. Find the list of questions and answers here. As always, it’s also a good idea to get a professional to help with any questions.
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