Florida Insurance Commissioner Mike Yaworsky has approved an average 12.8% rate decrease for more than 120,000 renter’s insurance policies issued by American Modern Home Insurance Company, with the new rates taking effect this month, the Office of Insurance Regulation announced on Friday.
The decrease applies to the company’s HO-4 policies and affects approximately 121,898 exposures statewide. The lower rates will take effect Oct. 11 for new policies and renewals.
Some policyholders could see larger reductions. According to the Office of Insurance Regulation, average decreases in more than 30 Florida counties will range from 13.1% to 13.9%.
American Modern Home has its largest concentrations of business in Orange and Broward counties, where average rates are expected to decline 13.4% and 13.8%, respectively.
Yaworsky said the approval is part of the Office of Insurance Regulation’s efforts to reduce insurance rates and encourage companies to seek additional decreases.
HO-4 policies, commonly known as renter’s insurance, generally provide coverage for a tenant’s personal belongings against covered losses including fire, theft and vandalism. The policies can also provide personal liability coverage for injuries or property damage for which the tenant is responsible.
Renter’s insurance does not cover the physical structure of the rented property, which is generally insured separately by the property owner or landlord.