Florida’s Democrat state Senators have introduced or are preparing a series of bills aimed at addressing the state’s home insurance costs, which are nearly twice the national average, according to Senate Minority Leader Lori Berman (pictured above) of District 26.
Berman said during that the proposed legislation generally focuses on providing financial assistance, offering tax cuts, or strengthening consumer protections.
“The out-of-control property insurance market affects all of us, whether you own your own home or rent it from someone else,” Berman said. She noted that while property insurance has been a topic of discussion for years, it is easy to lose sight of how much the situation has changed.
Nationally, the average homeowner pays about $2,400 per year for property insurance, a figure Berman said is similar to what Floridians paid a decade ago. Today, Florida homeowners pay nearly $5,700 annually.
Berman’s proposal would establish an Insurance Solutions Advisory Council to research strategies for lowering rates and submit annual recommendations. She noted that a similar approach was used in 2008 and produced results.
Senate Bill 30, authored by Sen. Barbara Sharief of District 35, would expand the authority of the consumer advocate, including granting subpoena power when rate increases are requested. The bill would prohibit the insurance department from approving any rate increase above 10% in a single filing and would cap cumulative increases at 15% over a 12-month period.
“No more piecemeal filings that quietly stack rate hikes on families who are already struggling to keep up,” Sharief said. She explained that the bill would also ensure a fast-tracked administrative and appellate review process for any challenges filed, so insurers would not be able to delay or increase costs during complaints.
Florida’s insurance market has seen increased competition and a decline in litigation following recent legal reforms. Governor Ron DeSantis has pointed to moderating homeowners’ rate requests and a reduction in lawsuits as signs that the reforms are having an effect.
Seventeen new insurers have entered the market since the changes, and Citizens Property Insurance Corp. has experienced a nearly 50% drop in its lawsuit count.
Senate Bill 108, introduced by Sen. Tina Polsky of District 30, would require disputed property claims to go through mediation. Polsky stated this would help reduce legal fees and court costs and lead to quicker resolutions.
Sen. Tracie Davis of District 5 plans to re-file a bill to reestablish an emergency relief fund for homeowners who demonstrate financial need. The fund would be managed by the Department of Financial Services.
Sen. Carlos Guillermo Smith of District 17 is introducing a bill to increase oversight by the Florida Office of Insurance Regulation into the use of managing general agents by property insurers. The bill would require full disclosure of affiliate payments, cost justifications for services, and profit margins, cap MGA fees at 20% of gross written premium, and prohibit dividend and executive bonus payments at distressed carriers.
Senate Bill 128 would require insurers to notify policyholders of their rights, including the right to an inspection, when facing nonrenewal or cancellation due to roof age. If an inspection finds a roof has at least five years of service life remaining, the insurer would pay for the inspection.
“This is about fairness, transparency and economic relief. It protects seniors and families from needless expenses, keeps roofs out of landfills and puts money back into Floridians’ pockets by preventing costly and unnecessary replacements,” Davis said.
Other proposals discussed include creating a national catastrophe risk pool, providing state sales tax exemptions for impact-resistant doors, garage doors, and windows, and establishing whistleblower protections.
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