New legislation is expected to help lessen the impact of the Florida home insurance crisis. The laws would make home insurance more affordable, while also allowing reserve funds to pay for extreme losses. Florida Governor Ron DeSantis signed insurance reform bills into law during the 2022 and 2023 legislative sessions. These new measures will go into effect in October and November of 2023. They focus on restructuring the claims process for public adjusters, insurer accountability, and multiple changes to property insurance.
House Bill 799 will change the rating factors and flood coverage requirements for various types of properties. When this law goes into effect, Citizens Property Insurance Corporation policyholders who are insuring seconding homes will be excluded from the rate cap, allowing the rate to increase up to 50 percent. This policy will go into effect on November 1st, 2023 for Citizens policyholders.
Another change coming for policyholders of Citizens is that properties covered by the insurance company will now require flood coverage. This excludes properties that do not have wind damage coverage and condominium policies. The properties with the highest replacement costs ($600,000) must obtain flood coverage by January 1, 2027. The new legislation addresses Citizens policyholders because this particular insurance company is run by the state of Florida.
House Bill 881 will open up the My Safe Florida Home program to more properties. It will not waive the wind-born region requirement. This means that properties no longer have to be located in a wind-borne debris region for eligibility. Another change is that the insured value of eligible homes will increase to $700,000. Meanwhile, the low-income grant amount has increased to $10,000.
Tracing the Origins of the Crisis
Florida has had issues with home insurance regulations for many years. Issues date as far back as 2017. That year, several insurance companies liquidated, leaving many policyholders high and dry. Now, we’re seeing many insurance companies in Florida that are also liquidating or being deemed insolvent. Some insurers are leaving the state for other reasons:
- Criminals facilitating insurance fraud through roofing claims. For this reason, Florida is reportedly home to 79% of home insurance lawsuits in the United States. Lawmakers believe that many of these lawsuit claims are fraudulent.
- Another reason is the concern for future storms affecting the state. Florida is a peninsula, which makes it particularly vulnerable to hurricanes and tropical storms. Researchers believe that future storm seasons will be more severe than in the past. This could result in more claims filed by homeowners and could result in a housing insurance crash.
COBIA Insurance Agency: Protecting Your Piece of Paradise
Please allow COBIA Insurance Agency to be your source for premium home insurance. We’ve been operating in Florida’s Brevard County since 2013. Our team is committed to providing our clients with tailored home insurance policies that offer the protection you need. Our 95% renewal rate supports our desire to always supply our clients with exceptional customer service. Along with home insurance, we can also provide you with flood insurance, auto insurance, umbrella insurance, and commercial insurance.
Despite the state’s home insurance crisis, COBIA Insurance Agency is here for you. Our company is home to experienced insurance professionals who will be dedicated to assisting you with navigating the complex state of the insurance industry. We understand the unique challenges that Florida homeowners are currently facing, and that’s why our commitment to you goes beyond simply providing insurance. We want to become a trusted partner in your time of need.
Please contact us to learn more about how we can begin your tailored insurance plan. Thank you for considering us as your insurance provider. We look forward to working with you!
