Two Florida lawmakers are trying to increase scrutiny on private property insurers operating in the state, asking companies to further open their books
when asking to increase their premiums. Why It Matters
Over the past few years, home insurance premiums have skyrocketed in Florida because of a combination of excessive litigation, widespread fraud and the rising frequency and severity of natural disasters. While state lawmakers' efforts to curb unnecessary litigation and attract fleeing insurers back into the state have been somewhat successful at stabilizing the market,
Florida homeowners still pay the second-highest premiums in the nation. The average annual premium for $300,000 in dwelling coverage in Florida is currently $5,488, according to Bankrate data—a much higher rate than the national average of $2,258. Only Nebraska homeowners paid higher premiums, at an annual average of $5,640 for $300,000 in dwelling coverage. In some of the most disaster-prone areas of the Sunshine State, the average annual premium was even higher, with West Palm Beach and Fort Lauderdale homeowners paying $8,084 and $7,935, respectively, for $300,000 in dwelling coverage.
What To Know
Crestview
Republican state Senator Don Gaetz and Pensacola Republican state Representative Alex Andrade recently introduced two bills—
SB 554 and
HB 451 —targeting Florida's rising home insurance costs and trying to increase transparency around rate changes. Under the two bills, insurers operating in Florida would have to pay claims quickly, streamline the adjustment process, and share attorney fees with policyholders during any litigation spurring from the claim process. The proposed legislation includes higher penalties for insurers delaying paying settlements. The bills would also force insurers to be more transparent around how much they pay their executive officers before they ask for rate increases and disclose any self-dealing with related companies. This would stop companies from artificially depressing their financial state to justify rate increases, the lawmakers said.
What People Are Saying
Don Gaetz and Alex Andrade, in a joint press release: "Floridians pay far more for property insurance than anyone anywhere else in the nation. Admittedly, Florida is a high-risk market, but we believe there are steps the Legislature can take to improve how rates are set and how individual claims can be processed faster and fairer. "There is no silver bullet that will automatically drive down property insurance costs. But we need to do more than reduce litigation. Our bill tackles other drivers of insurance costs and provides a transparent framework for honest rate-setting and prompter payments."
Gaetz, in the press release: "High property insurance rates are one of the reasons in-migration has slowed. High insurance costs make the Free State of Florida into the Unaffordable State of Florida for many seniors on fixed incomes trying to stay in their homes, young families, including military families, trying to buy their first homes and businesses of every size."
What Happens Next
The Florida property insurance market
has stabilized significantly after lawmakers in Tallahassee passed legislation to reduce excessive litigation in the state. Mark Friedlander, director of the Insurance Information Institute (Triple-I),
previously told Newsweek that the market is in "its strongest financial position in more than a decade." But lawmakers in Florida are set to continue introducing legislation trying to fix the market. In a previous statement to
Newsweek , state Senator and
Senate President Ben Albritton, a Republican representing Wauchula, said he was "not going to sit idly by if legitimate claims get denied while rates continue to rise. Period."
Is This Article Trustworthy?
Is This Article Trustworthy?
We value your input and encourage you to rate this article. We value your input and encourage you to rate this article.
Slide Circle to Vote
Top stories
About the writer
