An increasing number of people are worried that this year’s hurricane season and the Florida property insurance crisis may collide.
Christopher Rivera, a resident of West Tampa, is aware of the high cost of insurance these days.
“Everything has gone up,” he declared. “Not just property insurance but the cost of living.”
Steve Brunner has been battling excessive expenses in St. Petersburg as well.
“Between flood insurance, homeowner’s insurance, and taxes can run you [$10,000] a year. It adds up,” Brunner stated.
The Consumer Federation of America is now calling on legislators in Tallahassee to act more. It also calls for policyholder assistance from insurance firms.
“We want them to reject excessive rate increases and we want them to promote efforts to try to reduce risks, like providing grants to consumers,” Michael DeLong stated.
DeLong is advocating for insurance firms to offer policyholders who implement mitigation measures a discount. He adds that rising rates are a result of climate change. But Florida Governor Ron DeSantis just signed a bill that removes all mention of climate change from some current legislation.
In a virtual conference on Wednesday, Florida Democrats demanded greater action ahead of hurricane season.
Representative Susan Valdes (D-Tampa) is one of the prominent Democrats advocating for increased action. She thinks property owners are in for a perfect storm.
“Floridians do not have that kind of money to backfill their own home. That’s why they pay insurance,” Valdes stated.
Democrats worry that in the event of a crisis, Citizens Property Insurance Corporation, the state’s insurer of last resort, would run out of money.
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Currently, Citizens has 1.1 million policyholders. It only gets payment from certain landowners. It had $10.3 billion in total assets by the end of 2023. There is concern that the account might be closed because hurricane damage is estimated to be in the billions. State law requires taxpayers to pay the remaining expenses if that occurs.
Jimmy Patronis, the chief financial officer, stated that families will receive relief in a message on X, the platform that was formerly known as Twitter. He brought up changing who is eligible to sue an insurance provider. He also mentioned homeowner subsidies for safety improvements.
“There’s a light at the end of this tunnel with the combination of the “My Safe Florida Home Program” and with the combination of the litigation reforms we’ve had,” he stated.
Brunner and others will now have to wait for further action. As of right now, no special meeting is scheduled to address the property insurance situation.
