Representative Jared Moskowitz (pictured above), D-Florida, has reintroduced legislation designed to address rising homeowners' insurance costs by establishing a federal reinsurance framework for catastrophic losses.
The Natural Disaster Risk Reinsurance Act would create a catastrophic reinsurance backstop that caps the amount insurers pay for disaster claims, a mechanism intended to reduce the need for expensive reinsurance purchases. By lowering reinsurance expenses, the legislation aims to enable carriers to reduce premiums charged to policyholders.
The bill also includes provisions for post-event bonds covering losses that exceed a state's reinsurance cap, with states repaying the borrowed funds over 10 years through a temporary surcharge activated only after catastrophic events occur.
Moskowitz attributed Florida's elevated insurance premiums to the cost of reinsurance that carriers purchase to protect against catastrophic losses. While recent litigation reforms have improved conditions in the state, with Florida carriers securing an average 10.7% risk-adjusted reduction at the June renewal and Citizens Property Insurance reducing its policy count by one-third year over year, the underlying structural challenge of catastrophic risk remains unresolved.
"Insurance costs are crushing Florida families, and they deserve real relief — not excuses," Moskowitz said. "This bill tackles the root of the problem by lowering reinsurance costs so insurers can lower premiums."
The need for federal intervention has become more acute given long-term climate projections showing home insurance premiums in some Florida metropolitan areas rising over 200% in the next 30 years, with national average increases projected at 29.4% over the same period. These trends underscore that state-level solutions alone may prove insufficient.
States participating in the program would have discretion in determining which natural disasters receive coverage under the backstop. Eligible disasters include floods, hurricanes, wildfires and earthquakes, allowing states to tailor the program to regional risk profiles.
This flexibility reflects the recognition that as Florida reduced its own hurricane reinsurance funding by more than half – lowering the cumulative transfer limit from US$2 billion to US$900 million – insurers face fewer public-sector alternatives and greater pressure on private reinsurance markets. A federal backstop would help offset this capacity gap.
In January, Moskowitz joined forces with Representative Laurel Lee, R-Florida, to introduce the Residential Emergency Asset Accumulation Deferred Taxation Yield Account Act, a bipartisan measure aimed at enabling individuals to set aside funds for mitigation measures.
The READY Account would function as a tax-free savings vehicle similar to a Health Savings Account, allowing taxpayers to accumulate funds for at least 12 Federal Emergency Management Agency-approved mitigation measures.
Eligible mitigation strategies include reinforcing windows and doors, securing roofs and raising houses or constructing floodwalls to prevent water intrusion. Moskowitz characterized the two-pronged approach as complementary, addressing both insurance affordability and disaster preparedness.
"Disaster preparedness saves lives, and it can help reduce recovery costs when disasters hit the homes of hardworking Florida families," Moskowitz said.
