Florida's Property Insurance Crisis: An Update
The Florida legislature did not pass the two bills they had on their docket after failing to come to an agreement. This was likely a better outcome for most Floridian homeowners, as the two bills, as discussed in our previous article, would have placed homeowners in a worse position while needlessly boosting the insurance companies' power to overcharge and underinsure.
Citizens Property Insurance Corporation is Florida's nonprofit insurer, meant as a last resort for property owners. It was meant to provide homeowners unable to find property insurance coverage with an option. However, as a result of the numerous insurers leaving the state and rising property insurance rates, it has become the second largest property insurance company in the state, with 776,790 policies as of January 31, 2022. Two years ago, Citizens had 480,000. With the 30% increase seen by most homeowners of their property insurance policies, and over ten insurance companies leaving the state in just one year, Citizens has become the go-to insurer, rather than the insurer of last resort.
With the insurance market in complete crisis and the legislature about to head out of session, Senator Jeff Brandes has pled for a special legislative session to be enacted to specifically address this issue. Whether this special legislative session will take place is yet to be seen, however, homeowners should remain cautious. Each step the Florida legislature has taken has been lobbied by insurance companies, seeking to profit further from homeowners.
This article is not intended to be legal advice nor create an attorney-client relationship.