Florida lawmakers returning to Tallahassee for property insurance special session
Lawmakers are heading to Tallahassee to address the homeowners' insurance crisis. Their special session is expected to get underway Monday.
TALLAHASSEE, Fla. - Florida's special legislative session on property insurance begins Monday. State lawmakers will be together for a week-long special session and will be challenged with finding a way to make rates both affordable and available.
Since Hurricane Ian, the issue has only worsened as insurance rates continue to rise and force more companies out of the state, leaving homeowners with few options. So far, the storm has racked up at least $10 billion in insurance claims, but it's expected to top out at around $50 billion. It's something many are worrying will raise rates even higher if lawmakers don't come up with solutions – and fast.
Right now, Florida homeowners pay the highest property insurance premiums in the country – more than three times the national average, according to the Insurance Information Institute. The company reports that Floridians pay about $3,231 while the U.S. average is $1,544.
"It won't be solved within a week, but they're going to make some really strong movements to solve some of the major problems," said former state senator, Jeff Brandes. "The number one issue that they've got to address is the litigation flood that we have in Florida."
Gutted homes north of Toronita Avenue Beach Park in Wilbur-By-The-Sea, Florida, Friday, Dec. 2, 2022. The southern Volusia coastline was devastated by significant beach erosion from Hurricane Ian and Tropical Storm Nicole, causing millions in damage
Brandes said the insurance industry blames part of the crisis on what they consider overzealous litigation. Florida law allows attorneys to collect high fees in property insurance cases. While the state only accounts for about 9% of all property insurance cases, data from the state’s Office of Insurance Regulation shows 76% of all homeowner lawsuits filed against insurance companies are filed right here in Florida.
"When you couple that with we're the most hurricane-prone state, there's no wonder that rates are skyrocketing across Florida, but a lot of that is fraud and that's what the special session is going to take on," Brandes said.
Volunteers working to clear Ian debris in waterways
When Hurricane Ian destroyed homes along Florida's gulf coast, all that debris went everywhere, including into the water. In Englewood, scrap metal, parts of roofs and so much more are still visible in the water.
READ: Local environmental groups help clear waterways of Hurricane Ian debris
Fraudulent roofing claims are a major factor. That, with the excessive litigation, has driven at least 7 insurance carriers out of the state in 2022 alone and pushed dozens more to the brink of insolvency.
Florida homeowners who’ve bought private market property insurance have seen annual rate increases spike by more than 30%. Without further intervention, it’s likely insurance costs will climb even higher after billions in damage caused by hurricanes this year.
Blue tarp rests on top of a North Port home after Hurricane Ian.
"Even if the legislature gets everything right during this special session, it's going to take 18 to 24 months for that to work through the Florida policy book," Brandes offered, "and so I fully expect rates to go up another 20%-30% next year."
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December 12, 2022 at 06:13PM
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Florida lawmakers gather for special session focusing on property insurance, tax relief - FOX 13 Tampa
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