Florida can do more to weather the property insurance storm
PUBLISHED: June 14, 2024
With hurricane season underway, Florida is starting to see some relief in the state’s property insurance market.
While Florida property insurance rates continue to be among the highest in the nation, the percentage at which those rates have increased has slowed some. Signaling further relief for Floridians, eight new insurance companies are expected to enter the state to help stabilize the market and lessen the burden on Citizens Property Insurance Corporation, the state’s taxpayer-funded “insurer of last resort.” Additionally, lawsuits filed against insurers have dropped significantly, helping slow insurance rate increases.
These positive developments can be attributed to the important work done by Governor Ron DeSantis and our Florida Legislature. Over the last few sessions, they have passed historic tort reform to curb fraud and abuse in the legal system and made changes to lessen the burden on Citizens by moving some second homes into the private insurance market. While it will still be some time before we see the full impact of these reforms, the early reports give reason for optimism.
Despite improvements however, the state property insurance market still faces many challenges moving forward.
A recent Colorado State University report found that this hurricane season is expected to be one of the most active in recent memory, which could put the state’s recent reforms to the test. While Florida is no stranger to hurricanes, continued coastal buildup plus the effects of sea level rise will exacerbate the impacts of future hurricanes. With the state still recovering from the last few hurricane seasons, which included major storms like Ian, Idalia, Irma and Michael, another major storm could put further financial strain on the state’s property insurance market.
Florida needs to be thoughtful and proactive with future resiliency efforts, not just to lower the fiscal impacts and risk to the state property insurance market, but also to everyday Floridians. Improving building codes and zoning regulations, along with continued risk mitigation strategies, should be top of mind for lawmakers as they speak with constituents this election cycle.
Floridians should also look to find ways to make mitigation improvements to their homes and businesses as well. Resources like the My Safe Florida Home program can provide homeowners with a matching grant to strengthen their homes and potentially lower their insurance premiums. Businesses and homeowners can utilize the Home Hardening Tax Exemption for purchases of impact-resistant doors and windows through June 30, 2024, which also makes them eligible for potential insurance premium discounts.
While we still have a long way to go to making the state’s insurance premiums more affordable for Floridians, the recent policy changes look to be making an impact. These changes, coupled with continuing to seek ways to make Florida more resilient to future storms, will not only continue to stabilize the insurance market but also protect life and property.
Julio Fuentes is the President and CEO of the Florida State Hispanic Chamber of Commerce