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Is this a legal way to raise premiums?

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stormdodger

Junior Member
What is the name of your state? Florida

I renewed my windstorm insurance on 6/21/06 with building/contents coverage of $75k/$36k and a 2% deductible. The premium was double over the year before (understandable I guess).

I just got a notice 9/21 from the insurer increasing the coverage to $157/$76 (which also doubles the deductible). The premium was doubled again and the difference is due in 7 days on 9/30.

I called the agent and she said it was a "new law" that Florida residents can't be underinsured. Bottom line is that I can only self-insure the entire amount, not just a portion. And it seems they are only considering damage that amounts to a total loss.

Can someone site this law for me? Also please help me understand the logic behind this. Thank you for your comments...
 


tammy8

Senior Member
It sounds like they are using a coinsurance clause, meaning you have to be insured up to 80% of the value. Ask your agent if this is the case.
 

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