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John Grant Opinion: Continued Progress is Needed for Florida’s Property Insurance Woes

As chairman of the Florida Senate Insurance Committee,‭ ‬I was heavily involved in the insurance crisis that followed Hurricane Andrew more than‭ ‬30‭ ‬years ago.‭ ‬Unfortunately,‭ ‬once again,‭ ‬we are in an eerily similar situation with homeowners‭ ‬and insurers alike suffering.‭

Recently the market took another hit when Farmers Insurance‭ ‬became the fourth insurance company to leave the state within the past year.‭ ‬Then AAA piled on and said it would issue some non-renewals‭ ‬on‭ ‬a small percentage of its business within Florida.‭ ‬Both Farmers and AAA‭ ‬indicate their changes are because it’s‭ ‬become increasingly difficult to manage risk exposure in Florida.‭

This is underscored by‭ ‬Hurricane Ian’s devastation on the Gulf Coast,‭ ‬rebuilding,‭ ‬and recovery costs,‭ ‬leading‭ ‬to an unprecedented rise in reinsurance rates.‭ ‬Those increases,‭ ‬escalating housing prices,‭ ‬and inflation rates are creating the perfect storm for homeowners,‭ ‬especially our seniors who are on fixed incomes.‭

According to the Insurance Information Institute,‭ ‬the average annual property insurance premium‭ ‬in Florida‭ ‬is more than triple the national average.‭ ‬If homeowners haven’t lost their insurance,‭ ‬they’re likely to face rate increases.‭ ‬If they lose their insurance and can’t find a replacement,‭ ‬then they face foreclosure because most banks require‭ ‬proof of‭ ‬insurance to write loans on mortgages.‭

Thankfully,‭ ‬two special sessions‭ ‬on insurance in recent years‭ ‬led to revisions in the state’s legal infrastructure,‭ ‬specifically limiting‭ ‬the number of lawsuits that can be filed against insurance companies.‭ ‬Gov.‭ ‬Ron DeSantis‭ ‬and the legislature‭ ‬also made it possible to provide financial incentives to insurance companies in an effort to entice them to stay.‭

It has been made clear that the significant gains and momentum from the previous sessions will take some time to benefit both insurance companies and consumers.‭ ‬The Speaker of the House recently said that it will take a‭ “‬couple of years before it levels out.‭” ‬We cannot wait that long–especially seniors.

‭ ‬It’s important that politicians on both sides of the aisle not rest on the anticipated progress and call another‭ ‬special session on insurance to work on additional reform that can provide additional insurance relief.‭ ‬The legislature has made improvements,‭ ‬but they can do better.

With the state-led Citizens Property Insurance,‭ ‬which is supposed to be the insurance of last resort,‭ ‬projected to reach‭ ‬1.7‭ ‬million policies,‭ ‬or nearly four times its size in‭ ‬2020,‭ ‬we need additional reform now‭! ‬Citizens has added some‭ ‬4,000‭ ‬new policies within the past month.‭ ‬Change is necessary to help policyholders,‭ ‬make sure more insurers don’t leave our state,‭ ‬and give our residents more cost-effective options.‭

Clearly,‭ ‬this is a complicated issue that impacts almost everyone in the state,‭ ‬and this crisis is going to take a collective effort to solve.‭ ‬To be successful,‭ ‬we need our national and state-based insurers to continue their commitment to Floridians.‭ ‬The issue is not an insurance one alone.‭ ‬It affects the entire state economy.‭ ‬The time for the governor and the Legislature to act is now‭!

John Grant is a former Florida state representative and state senator.‭ ‬He is the president of Seniors Across America and a member of the PBM Accountability Project of Florida. He is also a member of the National Senior Citizen Hall of Fame.

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