Highlights:
Floridians Had The Worst Property Insurance Market In the Country. According to E&E News, “Long known as the nation’s most hurricane-prone state, Florida has achieved a new status that is aggravating hurricane anxieties and threatening real-estate values. Florida has the worst property-insurance market.” [E&E News, 9/19/22]
Property Insurances Rates In Florida Were The Highest In The Country At Almost Three Times As High As The National Average. According to E&E News, “Floridians now have the highest property-insurance rates in the nation, according to the industry-funded Insurance Information Institute. The average premium is $4,231 — nearly triple the U.S. average of $1,544.” [E&E News, 9/19/22]
Property Insurance Rates Were Expected To Go Up By As Much As 25% In June 2023. According to WFLA, “John Rollins is a former Chief Risk Officer at Citizens Property Insurance, the state insurer of last resort. ‘The sticker shock which we’ve all been experiencing for the past two or three years is not only not over, June 1st could result in the worst sticker shock yet,’ said Rollins. He says your premium could soon go up as much as 25%.” [WFLA, 2/20/23]
13% Of Florida Homeowners Did Not Have Property Insurance, Nearly Double The National Average. According to the Miami Herald, “As Florida’s property insurance market has seen double-digit percentage increases for the past few years, it has become the most expensive place to insure a home in the nation. State regulators say they don’t track how many homeowners are choosing to ‘go bare,’ but the Insurance Information Institute estimates that 13% of all Florida homeowners carry no property insurance, nearly double the national average of 7%.” [Miami Herald, 12/13/22]
2022: DeSantis Signed Property Insurance Reform And Hurricane Relief. According to Florida Politics, “A major rewrite of property insurance laws that seeks to limit lawsuits and stabilize a beleaguered market was signed into law by Gov. Ron DeSantis, sparking outcry from Democrats who say it gives too much to insurance companies without mandatory rate reductions or protections for consumers. ‘The issues in Florida’s property insurance market did not occur overnight, and they will not be solved overnight,’ DeSantis said. ‘The historic reforms signed today create an environment which realigns Florida to best practices across the nation, adding much-needed stability to Florida’s market, promoting competition and increasing consumer choice.’” [Florida Politics, 12/16/22]
Tampa Bay Times: Under The Law, “Hundreds Of Thousands Of Homeowners Covered By State-Run Citizens Property Insurance Are Almost Guaranteed To End Up Paying More.” According to the Tampa Bay Times, “But hundreds of thousands of homeowners covered by state-run Citizens Property Insurance are almost guaranteed to end up paying more. Everyone with a Citizens policy would have to buy flood insurance, some as soon as April. And those with Citizens would not be able to renew their coverage if they receive policy offers from private insurers that are within 20% of the cost of the Citizens premiums.” [Tampa Bay Times, 12/9/22]
Citizens Policyholders Would Not Be Able To Renew Their Coverage If They Received Policy Offers From Private Insurance That Was Within 20% Of Their Citizen’s Police Cost. According to the Tampa Bay Times, “But hundreds of thousands of homeowners covered by state-run Citizens Property Insurance are almost guaranteed to end up paying more. Everyone with a Citizens policy would have to buy flood insurance, some as soon as April. And those with Citizens would not be able to renew their coverage if they receive policy offers from private insurers that are within 20% of the cost of the Citizens premiums.” [Tampa Bay Times, 12/9/22]
The Legislation Stopped Insurance Companies From Paying Policyholders Legal Fees Regardless Of The Legal Dispute. According to the Orlando Sentinel, “The bills before the Legislature would do away with a law that requires insurance companies to pay the homeowner’s legal fees regardless of the outcome of a claims dispute and another that allows policyholders to assign benefits directly to their contractors.” [Orlando Sentinel, 12/13/22]
The Legislation Eliminated AOBs, Which Help Homeowners Who Do Not Have As Much Experience Dealing With Insurers. According to CBS Miami News, “Among other things, the plan also would eliminate the use of assignment of benefits, which involves policyholders signing over claims to contractors, who then pursue payment from insurers. The insurance industry argues that assignment of benefits fuels litigation, but attorneys and contractors say so-called AOB helps homeowners, who need damage repaired and do not have experience dealing with insurers.” [CBS Miami News, 12/12/22]
Under The New Legislation, Policyholders Would Be Incentivized To Give Up Their Right To Sue The Insurance Company. According to the Tampa Bay Times, “It allows insurers to offer policies that require the policyholder to engage in mandatory binding arbitration, which forces them into a dispute resolution process and forbids the policyholder from suing (and is often weighted in favor of the company). The insurer still would have to offer a policy without binding arbitration, and the policyholder who cedes their rights would have to receive an ‘appropriate premium discount.’” [Tampa Bay Times, 12/9/22]
Lawmakers Pushed For A $1 Billion Taxpayer-Funded Reinsurance Program For Insurance Companies
Legislation Would Create A $1 Billion Taxpayer-Funded Reinsurance Program. According to the Tampa Bay Times, “It would also create a new, taxpayer-funded $1 billion program to offer reinsurance, which is insurance that insurers buy ahead of storm season. Insurance companies have complained of rising costs of reinsurance.” [Tampa Bay Times, 12/9/22]
Legislation Would Shorten Timelines For Policyholders To File Claims
Legislation Would Shorten Timelines For Policyholders To File Claims. According to the Tampa Bay Times, “The legislation would dramatically change the time frames to file a claim and for insurers to respond to that claim: Homeowners would have one year, instead of two, to file a claim. They would have 18 months, instead of three years, to file a supplemental claim.” [Tampa Bay Times, 12/9/22]
Citizens Policyholders In Flood Zones Would Be Required To Have Flood Insurance Starting April 2023. According to the Pensacola News Journal, “New standards are also added. First-time Citizens’ customers in a flood zone would be required to have flood insurance, beginning in April. Homeowners renewing Citizens’ policies in flood prone areas would need the added coverage by July.” [Pensacola News Journal, 12/13/22]
Even High-Rise Condominium Citizen-Policyholders Would Be Required To Buy Flood Insurance. According to the Pensacola News Journal, “Still, for customers — especially the 1.1 million policyholders in state-supported Citizens Property Insurance Corp. — the measure will certainly have an impact. ‘My constituents are getting screwed,’ said Sen. Jason Pizzo, D-North Miami Beach. […] Pizzo pointed out that even high-rise condominium dwellers with Citizens’ policies in his Miami-Dade district will have to buy costly flood insurance. ‘You’re doing an absolute disservice for the citizens of this state by voting for this bill,’ Pizzo said. ‘I’m telling you, this is a very bad bill.’” [Pensacola News Journal, 12/13/22]
According To Department Of State Records, The Insurance Industry Lobbied For Removing Legal Fees And Eliminating AOBs, Which Made It Into The Final Bill. According to the Orlando Sentinel, “The bills before the Legislature would do away with a law that requires insurance companies to pay the homeowner’s legal fees regardless of the outcome of a claims dispute and another that allows policyholders to assign benefits directly to their contractors. The insurance industry, which pumped more than $15.5 million into the 2022 campaign cycle, according to Department of State records, has lobbied the Legislature to pass both things for years.” [Orlando Sentinel, 12/13/22]
Orlando Sentinel: Property Insurance Reform Was An “Industry-Friendly” Bill. According to the Orlando Sentinel, “The Florida Senate on Tuesday rammed through an industry-friendly insurance reform bill in just two days that supporters said would stabilize an ailing market but opponents argued would rob homeowners of their right to sue over claims disputes and broken contracts.” [Orlando Sentinel, 12/13/22]
House Democratic Leader Fentrice Driskell Called The Legislation A “Bailout” For The Property Insurance Industry. According to Florida Politics, “Addressing reporters after the Speaker’s post-Session news conference, House Democratic Leader Fentrice Driskell, who filed Democrats’ bill (HB 9A), responded to Renner’s claims. ‘I think the alternate reality is believing that we’re a Legislature who couldn’t have done anything about it,’ Driskell told reporters, speaking of rate increases, claim denials and long waits to resolve claims. ‘We’re at a time where Florida has the largest budget surplus in its history, and rather than directly help homeowners, we provided a bailout to the industry.’” [Florida Politics, 12/14/22]
Insurance Expert: “We Do Not Expect To See Immediate Relief For Consumers.” According to the Orlando Sentinel, “Mark Friedlander of the Insurance Information Institute, a national industry analyst, said, ‘We do not expect to see immediate relief for consumers but the eventual goal is to moderate premium increases, which are averaging 33% statewide this year, and to attract more insurance companies to write residential business in Florida, which will benefit all homeowners.’ Rates will continue to escalate in the short-term, however, because of ongoing litigation expenses, he said, estimating some 130,000 property claims lawsuits will be filed this year in Florida. Those rates are also affected by rising replacement costs caused by inflationary impacts on construction material and labor, he said.” [Orlando Sentinel, 12/15/22]
DeSantis Signed Tort Reform Bill Into Law, Said The Bill Was Part Of Desperately Needed Legal Reform To Help Florida Which Was Long Considered A “Judicial Hellhole.” According to DeSantis’ press release, “Today, Governor Ron DeSantis signed House Bill (HB) 837, Civil Remedies, to decrease frivolous lawsuits and prevent predatory practices of trial attorneys who prey on hardworking Floridians. This bill modifies the bad faith framework, eliminates one way attorney’s fees and fee multipliers and ensures that Floridians can’t be held liable for damages if the person suing is more at fault. Additionally, this bill expands immunity for property owners defending against a criminal who is injured on their property while providing uniform standards for juries in calculating medical damages and reducing the statute of limitations for general negligence cases from four years to two years. The Governor proposed this legislation in February before the start of the 2023 Legislative Session. ‘Florida has been considered a judicial hellhole for far too long and we are desperately in need of legal reform that brings us more in line with the rest of the country,’ said Governor Ron DeSantis. ‘I am proud to sign this legislation to protect Floridians, safeguard our economy and attract more investment in our state.’” [Gov. Ron DeSantis, 3/24/23]
Florida Legislators Passed Bill Targeting Insurance Lawsuits, Shortened The Time Plaintiffs Could File Negligence Lawsuits And Contained Provisions Which Would Help Property Owners In Lawsuits. According to Politico, “Florida’s Republican-controlled Legislature on Thursday sent to Gov. Ron DeSantis a sweeping crackdown on lawsuits despite protests from some members of his own party that the bill is a giveaway to insurance companies and is unfair to the families of crime victims. The bill is the first of DeSantis’ legislative priorities lawmakers sent to his desk, setting up what is expected to be a string of legislative victories for the governor ahead of his expected run for president later this year. It also hands a stinging loss to trial attorneys, a group that has been one of the few constant sources of campaign donations to Democrats in the state. […] But legislators moved the bill targeting lawsuits the fastest. DeSantis called for the changes ahead of the session, and it’s also a top priority of major special interest groups including the state’s main business lobbies. The bill shortens the time plaintiffs can file negligence lawsuits and contains a provision that would help property owners in lawsuits alleging lax security.” [Politico, 3/23/23]
The Bill’s Measures Changed How Attorney Fees Were Paid, Designed To Bring Down The Number Of Lawsuits Filed Against Insurance Companies. According to Politico, “Some of the biggest and potentially most consequential changes, however, center on the state’s insurance carriers. The measures — which include changes to how attorney fees are paid — are designed to bring down the number of lawsuits filed against insurance companies, including those where business customers are plaintiffs. Some of the changes have long been sought by insurers but have been rejected by previous GOP legislative leaders.” [Politico, 3/23/23]
Politico: The Bill Was Long Sought By Insurers While It Has Been Rejected Previously By Republican Legislative Leaders. According to Politico, “Some of the biggest and potentially most consequential changes, however, center on the state’s insurance carriers. The measures — which include changes to how attorney fees are paid — are designed to bring down the number of lawsuits filed against insurance companies, including those where business customers are plaintiffs. Some of the changes have long been sought by insurers but have been rejected by previous GOP legislative leaders.” [Politico, 3/23/23]
Opponents Of The Bill, Including Republicans Who Voted Against It Such As State Sen. Erin Grall, Argued The Bill Would Harm Consumers. According to Politico, “But other legislators — including a handful of Republicans who voted against the bill — said the legislation goes too far and will harm consumers. They expressed deep skepticism it would do anything to stem an ongoing rise in insurance rates. ‘There are 22 million Floridians who will now be exposed to higher risk, less safety and fewer options to hold wrongdoers accountable,’ said Sen. Erin Grall (R-Fort Pierce). ‘Our constitution says liberty and justice for all not the few — all. And this bill is not justice for all.’” [Politico, 3/23/23]