Florida Governor Ron DeSantis has signed into a law sweeping property insurance legislation that creates a $2 billion reinsurance fund and rewrites rules on coverage denials and attorney fees, in a move to stabilize rising costs and insurer losses.
DeSantis, a Republican, announced the bill signings in a statement that called the package “the most significant reforms to Florida’s homeowner’s insurance market in a generation.”
The signings mark an end to a special legislative session on insurance where lawmakers in the GOP-controlled statehouse approved the broad measures in three days, with little public input or expert analysis. The legislature failed to approve insurance reforms earlier this year during their regular meeting period, which was dominated by intense partisan fights over bills on abortion, sexual orientation, and gender identity.
In the statehouse, the bills largely moved with bipartisan support, with lawmakers describing the package as a meaningful first step in repairing a market plagued by insurer insolvencies, policy cancelations and rising insurance costs.
The main point of criticism from Democrats, the minority party, was that the legislation does not do enough to grant immediate financial relief to homeowners whose premiums have increased. Republicans acknowledged it will take 12 to 18 months before prices may drop.
“I don’t know what else I can do to lower my insurance,” said Roni Sterin, a real estate agent in Broward County who said her insurance costs unexpectedly jumped about $1,500 recently. “Nobody’s helping us.”
The new Florida laws will create the $2 billion Reinsurance to Assist Policyholder’s program for insurers to purchase insurance to help insulate themselves from risk. Insurers will have to reduce policyholders’ rates to access the state reinsurance fund. It also offers grants of up to $10,000 to outfit homes so they are less vulnerable to hurricane damage if the homes meet certain criteria.
The legislation forbids insurers from automatically denying coverage because of a roof’s age if the roof is less than 15 years old. Homeowners with roofs 15 years or older will be allowed to get an inspection before insurers deny them coverage.
The property insurance legislation also seeks to limit various attorney fees in insurance-related cases, which insurers blame for much of the rate increases for policyholders. Supporters of the legislative package have frequently noted that Florida accounts for nine percent of all insurance claims filed nationally but nearly 80 percent of all the property insurance lawsuits.
