HomeHome InsuranceProposal would slash insurance rates by 25%, backers say

Proposal would slash insurance rates by 25%, backers say

Two longtime South Florida political leaders are pushing a congressional bill they say would immediately lower the cost of homeowner property insurance by about 25% in Florida and across the nation.

That would be welcome news to millions of Florida homeowners suffering under backbreaking increases in property insurance costs over the past several years. The Insurance Information Institute, a nonprofit organization funded by large insurers, estimated in 2023 that Florida homes cost $6,000, three times the national average, to insure.

Steve Geller, a former Florida legislator and current Broward County commissioner, presented a plan he says would cut by half the amount of reinsurance that Florida-based insurance companies must purchase each year to ensure they can pay all claims in the event of a major storm.

Currently those companies are required by rating agency Demotech to purchase enough reinsurance to pay claims after a storm that has a 1-in-130-year chance of occurring.

Geller says such a storm hasn’t happened in Florida. And it’s been since the 1920s that the state has experienced a 1-in-50-year storm.

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