If you own your home, you’re probably very aware that property insurance premiums have skyrocketed recently. Some premiums have gone up as much as 60%. Over the weekend, I was interviewed by WTSP 10 Tampa Bay to discuss these increases and what our lawmakers can do about it.
The Florida legislature is meeting in a special session that began today (May 23) to talk about ways to reduce the insurance burden on property owners. The bills on the table include creating a $2 billion reinsurance fund, setting rules to prevent insurers from denying coverage, changing the Florida building code, setting litigation fee limits, and more.
There isn’t one best solution for lowering costs. That’s because there are many different reasons why premiums have gone up so much, especially in Florida. One reason has to do with litigation fees, with some attorneys hiking up claims payouts by charging insurers more.
Additionally, some insurers are dropping clients entirely to avoid paying out claims. When homeowners are denied insurance, they can get policies through the Citizens Property Insurance Corporation (CPIC), which is Florida’s insurer of last resort. But it’s tough to see my clients forced to pick an expensive CPIC policy, especially when first-time homebuyers and single-income professionals are already struggling amid high inflation.
Some of my clients—especially those moving to Tampa from another state—are shocked to see how much they’re required to pay for coverage. It doesn’t usually break the bank, but these high premiums are a serious strain on budgets.
My clients aren’t likely to lose their homes over these insurance costs—but that is a possible reality for some lower income homeowners here in Florida. That’s why I hope this special legislative session is able to pass bills to protect Floridians and make homeownership more accessible for everyone.