The price of property insurance policies has doubled unsustainably and continues to grow while private companies are pushed to shut down, resulting in the cancellation of almost 70,000 homeowners’ policies in the state. At present, due to a lack of coverage options, Florida property owners are forced to get property insurance through the state insurer (the Citizens Property Insurance Corp) and there is a growing fear that the program’s funds will be drained with an active hurricane season underway. 

Florida Senate Response

Recently, the Florida Senate approved a sweeping legislative package designed to combat rising property insurance rates and other problems in the state’s turbulent insurance market. Some of the steps being made are the creation of a $2 billion reinsurance fund and the implementation of new rules around coverage denials and attorney fees. In addition, the following bills and measures are also being pushed forward:

1. Rescue Bill 19-2
2. $150 billion to the “My Safe Florida Home Program.”
3. Instead of paying premiums in RAP funds, participating insurance carriers would be required to provide rate relief to their policyholders (for those who have already sought reinsurance, they can access the RAP fund next year.)
4. This could cause a 4% decrease in average premium reductions for participating insurers. 
5. The bills would forbid insurers from automatically denying coverage because of a roof’s age if the roof is less than 15 years old. Homeowners with roofs 15 years or older would be allowed to get an inspection before insurers deny them coverage. If an inspection shows that a roof has at least five years of life remaining, insurers can’t refuse to issue a policy only based on the roof’s age, under the proposed legislation.
6. Another measure would provide grants worth up to $10,000 each to retrofit homes so they are less vulnerable to hurricane damage.
7. The legislation also seeks to limit various attorney fees in insurance-related cases, which insurers blame for much of the rate increases for policyholders.

The ongoing overhaul will address key issues and offer more creative coverage options for Florida consumers through: 

• Private market flexibility.
• More affordable insurance premium prices.
• Increased transparency in insurance claims.
• A home hardening program for Florida consumers. 
• Additional resources to combat fraud within the insurance industry.
• More insurance carrier options.
• Home insurance will need to be more transparent, and policies will need to protect homeowners better.
• The law will keep attorney rates considerable and in return, decrease litigation.

How to protect yourself and your property 

• Keep your roof and property in good condition
• Install hurricane straps
• Keep an eye out for fraud 
• Keep your insurance options open 

Stabilizing the Florida property insurance marketplace might seem like a long shot; however, the Florida legislature has finally realized that the property insurance crisis cannot go on impacting Florida consumers and stakeholders as these grave issues affect not only the insurance industry but also the state’s economy. Fulcro applauds these new steps being made and is confident the reforms will bring much-needed stabilization to Florida’s property insurance marketplace and provide much-needed relief to Florida consumers. Stay tuned for updates on these reforms.

Contact our insurance specialists to learn more about your property insurance options.