Florida – The state of Florida is making progress in addressing the affordability challenges posed by homeowners insurance costs for homeowners. Reforms passed by the legislature in recent years have shown signs of success, with new insurers and private capital entering the state, while established companies reaffirm their commitment to Florida in light of these reforms.
The reforms have been instrumental in driving positive changes in the property insurance market; however, it is recognized that the benefits may take time to reach households across the state. It is understandable that families are frustrated by the cost of premiums and need to see savings and stabilization now…. It is for this reason that I am encouraged to see rate filings for 2024 indicate a slight downward trend for the first time in years, signaling initial steps toward stabilization in the property insurance market. Note that ten companies have filed no rate increases and at least eight companies have filed a rate decrease that will take effect in 2024.
Senate President Kathleen Passidomo expressed her approval of these developments, noting the positive impact of these changes for Florida families. «Each development is significant. The recent rate filings, along with our efforts to reduce taxes associated with flood insurance and homeowners insurance premiums by $500 million, provide vital relief to families navigating the changing insurance market landscape.»
In addition to these positive developments, the Office of Insurance Regulation (OIR) took steps to enforce consumer protection. Fines were levied against five companies for mishandling claims after Hurricane Ian, including a $1 million fine, one of the largest in state history. These actions, aimed at ensuring fair costs and consumer protection, underscore the state’s commitment to strong insurance oversight and analysis.
In addition, Governor DeSantis recently signed into law important updates to the My Safe Florida Home program, which was enacted in the previous legislative session. The program is designed to support Florida families seeking to strengthen their homes against natural disasters while reducing property insurance premiums. By increasing funding for this initiative, with a focus on low-income Floridians and seniors, and exploring the expansion of coverage to condominium associations, we will help many of our coastal residents. The state aims to strengthen resiliency and affordability for coastal residents.
Chairwoman Passidomo emphasized that these updates are intended to benefit the state’s residents and reinforce the commitment of the Florida Legislature and Governor to strengthen homes and control costs amidst the changing insurance landscape.