July 3, 2022
  • July 3, 2022

The reform of property insurance in preparation before the special session

By on May 18, 2022 0

Sen. Jim Boyd says he is working on negotiations to get a bill to table for next week’s special session.

Florida lawmakers are beginning to prepare bills to consider next week for the special session on property insurance.

Many owners have seen their premiums increase by 30-60%. One of the things that has driven up the costs is the number of litigations. Florida accounts for 8% of all property insurance claims and 76% of all lawsuits in the United States. This forced several insurers to close their doors this year and reduced competition.

Senator Jim Boyd of Bradenton is an insurance broker, so he sees the problem firsthand.

“We have to provide a market which I think is a level playing field. Now, when 71% of claims are paid with those fees going to attorneys and 8 or 10% of those claim dollars going to landlords, there is something wrong with that picture,” Boyd said.

He discussed with the governor’s office and worked with the House on a bill to deal with the lawsuits.

“We need to address this ongoing litigation that is not appropriate, not appropriate and not productive and show other businesses and owner carriers that Florida is an attractive place to deploy their capital. “, Boyd said. .

He adds that his goal is to get some of the national insurers like State Farm, Allstate and Travelers to do business here and create more competition.

One idea that has been floated is to make changes to the Florida Hurricane Catastrophe Fund. If insurers pay less, that in turn could mean lower premiums for homeowners, but it could also mean there’s less money available to cover costs.

Boyd says he wants to review changes to the CAT fund later this year and work on litigation matters now. He also wants to take a look at Citizens Property Insurance in the next legislative session, which is the state insurer that provides insurance for those who cannot obtain policies in the private market. In 2021, the number of policies increased by almost 38%. Citizens should have over a million fonts by the end of 2022.

“Citizens, I’ve always said, should be the market of last resort, not the market of choice,” Boyd said.

Lawmakers must move quickly to compromise because this special session begins on Monday.