DeSantis to Make Major Changes to Property Insurance. What does It mean for Homeowners?

Photo byPhoto by: State Farm

Property insurance has been a painful part of Florida's story.

However, Florida leadership has now introduced major changes to property insurance after insurance companies fled the state earlier this year, leaving millions without proper coverage.

The SB 2-A and SB 4-A bill is now ready. Republican Gov. Ron DeSantis has signed the bill bringing a $1 billion reinsurance fund, lower litigation costs, and forcing some customers to leave a state-created insurer.

Florida lawmakers approved legislation intended more to keep private insurers in the state than to immediately save property owners money in an effort to solve a home insurance issue. This issue has been plaguing Florida for thirty years.

In a vote of 84-33, the Florida House passed the bill on Wednesday, a day after it passed the Senate in a special session. Gov. DeSantis signed the bill on Friday.

Everything in our power

“We can’t stop the weather, but we can address the cost of reinsurance, we can stop the fraud, we can tighten up the regulations, and we can address court decisions,” said Republican Rep. Tom Leek, the House bill sponsor.

Since 1992, when Hurricane Andrew destroyed Homestead, destroyed some insurance carriers, and made the remaining firms hesitant to offer new policies or renew existing ones there, Florida has battled to preserve stability in the state insurance market.

Florida homeowners were already having trouble this year replacing lost policies or paying premiums, and an increasing number of them were turning to Citizens Property Insurance Co., the state-created insurer of last resort.

In May, the Legislature convened a special session in an effort to contain the problem. Then Hurricane Ian tore across southwest Florida last September, leaving behind estimated property damage of up to $70 billion.

Democratic Rep. Dotie Joseph proposed an amendment freezing property insurance rates for a year, arguing that the law does very little to assist those who are facing significant rate hikes.

The bill also would oblige insurers to respond more swiftly to claims and increase state oversight of insurers’ conduct after hurricanes.

What do you think about the new property insurance bill?

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