A notable property insurance company is lowering its rates in Florida as homeowners continue struggling with insurance prices.
Heritage Insurance Holdings Inc. is decreasing the cost of insuring homes and other property. The agency announced this week that the Office of Insurance Regulation gave the go-ahead for the company to lower rates by 3.3%. The lower cost for coverage will go into effect Aug. 20.
Heritage officials credited the Legislature for prompting the rate decrease.
"This rate decrease is reflective of the positive impacts of the Florida legislative changes, which eliminated one-way attorney fees and reduced other abusive claims practices, improving loss trends and the stabilization of the reinsurance market," a Heritage news release said.
Company officials said that move by lawmakers allowed them to pass along financial adjustments to customers.
"Our commitment to providing Florida with affordable and reliable insurance solutions remains steadfast," said Ernie Garateix, CEO of Heritage. "The approved rate decrease is a testament to our efforts in effective risk management and strategic underwriting practices."
The current insurance rate situation in Florida has been labeled as a "crisis" by many state government officials such as Chief Financial Officer Jimmy Patronis. Nationally, insurance rates have climbed by 21% in the past year. In Florida, some of those rate hikes have doubled that figure.
In April, Patronis told Florida residents to hold steady as he advised those coverage costs were about to become more manageable for many Sunshine State residents.
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