Florida Governor Ron DeSantis signs property insurance bill to make policies more affordable
SARASOTA, Florida – Florida Governor Ron DeSantis signed a property insurance bill Friday morning identifying several causes of rising premiums, including hurricanes.
The governor signed SB 76 which he says will help Florida “turn the corner and go to a better place.”
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“Florida is obviously a unique environment for a lot of things, but especially as storm-prone states we are particularly susceptible to having to respond to natural disasters, and that obviously has an impact when you talk about the homes of the people and make sure the houses against potential damage because of it, ”he said.
Due to “significant premium increases,” SB 76 prohibits certain contractor practices by establishing guidelines and restrictions on what home inspectors can do to make policies more affordable.
A spokesperson for the Florida Office of Insurance Regulation told News 6 earlier this year that the challenges are largely due to increased litigation, increased losses from catastrophic claims as a result. several hurricanes in recent years and increasing reinsurance costs.
Florida Senator Jim Boyd told the press conference that the bill identified the cost drivers. He said unlicensed contractors or “unscrupulous contractors” in the business were driving up costs.
“But we have significant penalties and responsibilities for them,” he said. “… Then some of the claims pointing to other areas that I think will definitely, certainly make a difference and reduce costs.” “
Boyd said the impacts of signing this bill will take a year to 18 months to filter through the system and post affordable rates.
Lawmakers have said Florida accounted for 76% of U.S. damages lawsuits between 2013 and 2020. Florida Insurance Commissioner David Altmaier said the goal was for insurance “not to be not a concern “for consumers, especially during hurricane season.
“Already since the passage of this bill, we have already seen positive signs from the market,” said Altmaier. “We have seen carriers bring additional capital into the private market to strengthen their balance sheets, we have seen positive news from the reinsurance markets regarding the direction reinsurance rates are going, which is a critical part of our Marlet.”
The press conference comes a week after DeSantis signed three bills that benefit veterans and their families.
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