Florida Homeowners’ Insurance Rates May Rise Thanks to New Property Insurance Reform Law Being Passed by Florida Legislature

Posted By on May 5, 2011

The Florida Legislature has just kicked a lot of Florida homeowners while they’re down, with yesterday’s announcement that an agreement has been reached on the passage of a bill that will not only allow insurance companies to hike the cost of property insurance, but it will also okay the insurer’s ability to shorten the deadlines for claims to be filed by their policyholders.  Great, just great.

Senator Garrett Richter (a Republican out of Naples, Florida) explained to the press that this new law will help the Florida insurance companies, who apparently are hurting in today’s bad economic climate.  For many, of course, the response to the poor insurance companies’ dire straits is “join the club.”

Proponents argue that this new law will entice more insurance companies to do business in Florida, and more competition will help Florida homeowners.  Heck, even the Florida Wildlife Federation and the Florida Catholic Conference have given this legislation a thumbs up.

However, many are warning that all this means is higher rates for Floridians – and a higher risk of a denied claim when they experience a loss. Democratic senators fear that all this law really does is help big business — and that Florida’s Average Joe, already fighting to hold onto his home, just got kicked again.

Want to follow the proposal or read the drafts? Go here to read and follow the legislation online.

The latest?  Yesterday, the Florida House approved a version of the bill that will legally require insurers to cover structural damage – and only structural damage –  for primary buildings. Structural damages?  That’s defined in the new law after the insurance companies complained about having to pay for claims they considered frivolous or silly.  Driveway cracks, for example.

Now, the ball has been tossed back to the Florida Senate.  Once the Senate votes to pass the law, the final version of the law goes to Governor Scott’s desk for his review and signature.  No one really doubts that the Governor is going to sign the bill.

Comments

2 Responses to “Florida Homeowners’ Insurance Rates May Rise Thanks to New Property Insurance Reform Law Being Passed by Florida Legislature”

  1. Brandon Bey says:

    Larry,

    This article is so true. Performing wind Mitigation inspections and other insurance inspections, I hear the sad statements from homeowners that if their insurance goes up one cent they will lose their home. I think competition is important in the industry

    BB

  2. Hi Brandon,
    Thanks for taking the time to write — and for sharing your input of how things stand, from your perspective as an inspector. Appreciate it.
    Best,
    Larry

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