Crosstown Engineering CEO & Principal Engineer Adam Green, is a licensed structural engineer and as an independent insurance adjustor licensed in 10 states he has informed numerous homeowners on the differences in homeowners insurance regulations from state to state.
There are many factors that influence insurance rates on the state level that are often framed by disastrous covered losses, such as hurricanes, sinkhole activity or other hazardous incidents specific to certain states and regions. The varying insurance regulations are typically put in place in response to catastrophic events that previous regulations and systems could not support.
In Florida, a catastrophic event that could occur is during hurricane season. Hurricanes in Florida in 2004 caused $22B+ flurry of covered losses in the form of insurance claim payments to victims. Four more hurricanes made landfall the very next year. These hurricanes were ‘weathered’ because of the new landscape of insurance framework that was built in the wake of Hurricane Andrew in 1992.
Hurricane Andrew was a category 5 storm that made landfall in South Florida and altered the state’s history by transforming Florida property insurance and the global catastrophe market. The hurricane rocked the insurance industry and lead to several bankruptcies and a reconstituted property market. Several regional insurers failed and large insurers made business decisions to limit their risks, which are still intact today.
Home insurance regulations do vary from state to state. Homeowners who are interested in the specific differences in regulations should consult the office of insurance regulation in the state they live in.