TALLAHASSEE, Fla. – Jan. 9, 2012 – Some homeowners have had to beef up the amount of property insurance they buy to cover what they say are inflated cost estimates to rebuild their homes.
It’s a double whammy for homeowners because for many, rebuilding costs didn’t go down when the economic downturn lowered construction costs over the past few years.
Take John Hutelin, a pilot in Plantation whose premium increased 24 percent, to $3,873, after Citizens Property Insurance recalculated the cost to rebuild his home.
“That’s how they’re increasing premiums,” Hutelin said. Rebuilding costs are one of two ways state-backed Citizens can get around a law capping its annual premium increases at 10 percent.