Some Florida homeowners who participated in the state’s My Safe Florida Home program are reporting higher insurance premiums after completing storm-resilient upgrades, despite expectations of savings.

The program, which relaunched in 2022, covers up to two-thirds of costs for hurricane-protection improvements, with a maximum grant of $10,000 per household. State officials have promoted the initiative as a way to both strengthen homes and potentially reduce insurance costs.

Tampa homeowner Kendall Trosky spent thousands on upgrades through the program, but her premium increased by $1,500 upon renewal. “I was told that would allow me to acquire a discount on my insurance premiums,” Trosky said. “I thought, here I improved my house, why am I paying more?”

The increase may be tied to replacement cost calculations used by insurance companies. When homes receive upgrades like new windows or stronger roofs, insurers may increase their estimate of what it would cost to rebuild the property, potentially offsetting any premium reductions from improved storm resistance.

Insurers are not legally required to disclose how they calculate replacement costs. A 2021 state law banned the disclosure of replacement cost calculations for lending purposes, making it difficult for homeowners to understand how upgrades affect their rates.

Jeff Brandes of the Florida Policy Project noted that insurers may not provide discounts for partial upgrades. “They weren’t providing a discount for just getting a third of your windows done. They needed to see all of the windows done,” he said.

The situation is particularly challenging for homeowners who have moved from Citizens Insurance to private “takeout companies,” as they have a limited ability to shop for better rates.

The program has not been audited since 2010, according to Brandes, who suggests lawmakers should review its effectiveness. News outlets have requested data from state officials to verify whether participants typically save money on insurance, but have not received a response. Governor Ron DeSantis has stated that participants “more often than not” see premium decreases.

Follow the St. Pete-Clearwater Sun on Facebook, Instagram, Threads, Google, & X

(Image credit: Port St Lucie Talks)

PIE-Sun.com: local St. Pete-Clearwater news