Florida is the only state that borders both the Atlantic Ocean and the Gulf of Mexico. You’re never more than 60 miles from the nearest body of salt water. Since 1851, 41% of all hurricanes have hit Florida.

Floridians pay roughly three times the national average on homeowners insurance premiums. We make up roughly 7% of the U.S. population and about 8% of all property insurance claims – but it also represents almost 80 percent of all property insurance litigation. Florida’s lawsuit system promotes frivolous litigation scams, which ends up costing every homeowner with higher premiums.

Through Senate Bill 2D, a program called ” My Safe Florida Home Program” offers funds for free hurricane mitigation inspections. It offers a $2 match for every dollar spent to harden your home from hurricanes up to $10,000.

The Reinsurance to Assist Policyholders (RAP) program was enacted to reimburse 90% of an insurer’s covered losses and 10% of their loss adjustment expenses for the two most damaging hurricanes during the contract year. Insurers do not pay premiums for RAP program coverage, but must reduce rates to reflect savings. Insurers that participate in the RAP program for 2022-2023 with rate reductions by June 30, 2022 or participate for 2023-2024 with rate reductions by May 1, 2023.

Coverage cannot be denied if the roof age is less than 15 years old or determined to have at least 5 years useful life remaining. Thirty-year-old condominiums (three or more stories) must be inspected every 10 years. Twenty-five-year-old condominiums along the coast must also be inspected every 10 years.

Since frivolous fraudulent claims cause increased premiums, the bill would limit the assignment of attorney’s fees and adjustment claims regulations. More rules on open communication concerning denial or partial denial of claims may prevent litigation lawsuits.

Insurance companies’ financial strength ratings is reviewed yearly by Demotech. Ratings below an “A” can affect policyholders who still hold a mortgage. The Florida Office of Insurance Regulation (OIR) with a reinsurance fund through Citizens has helped downgraded companies to meet these requirements.

Protecting from financial strength rating downgrades, curbing scams and approaching insuring Florida homes differently will save the homeowners insurance market. These measures will take time. Perhaps in 2023 we will see some relief.

Barbara Murtagh

Crystal River