3 things need to happen to correct the struggling insurance market

ORLANDO, Fla. – Many customers are nonetheless struggling to discover and afford property insurance.

Florida’s insurance market was already in disaster earlier than Hurricane Ian, now Florida lawmakers are gearing up for the second particular session on property insurance this yr.

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Florida Sen. Jeff Brandes, D-St. Petersburg, says a number of things need to happen and so they need to happen shortly, together with restructuring how legal professional’s charges are paid to attempt to reduce down on what insurers name extreme litigation.

Consumers are involved about two things — holding their protection and reducing their charges.

Ginger Singer says when she received a non-renewal discover that she was being dropped by her insurer, she was utterly caught off guard.

“It was a total surprise to me,” Singer stated. “And for them to say why they were not renewing the policy just blew me away. I’m like, ‘why, how can you do that?’” she stated.

The firm is “reducing hurricane exposure,” in accordance to the letter, one thing we’re seeing increasingly in the Sunshine State.

“People need to be insured,” Singer stated. “They need to know that if something terrible happens that they can recover financially, and still have a home,” Singer stated.

The listing of insurers going out of business or leaving the state has gotten longer and longer over the previous two years.

In truth, the governor is asking for a particular legislative session on property insurance later this yr — the second of the yr.

“All these sessions, it’s not rocket science,” Singer stated.

Brandes has been in the Florida legislature 12 years, however shouldn’t be working once more due to time period limits.

“I think you’re going to get things accomplished. The question is, is it enough?” Brandes stated. “The industry as a whole has stage four terminal cancer right now.”

Insurers declare extreme litigation, roofing schemes, and the value of reinsurance have pushed up costs.

Brandes says the very first thing the legislature ought to eliminate is one-way legal professional’s charges,  the place insurers pay customers’ legal professional’s charges after litigation.

(*3*) Brandes stated.

Then, the legislature ought to enable insurers to present precise money worth on roofs as a substitute of full roof replacements, Brandes stated.

Finally, Citizens Insurance has to be addressed, Brandes stated.

“The government insurer of last resort has become a predatory competitor in the state of Florida. Their prices in the Tampa Bay market and in Miami-Dade are 50% below the market price,” Brandes stated.

Citizens has to enhance charges to stabilize the market, he stated.

“Understand how politically difficult it’s going to be for the politicians in Tallahassee to raise Citizens’ rates to where they have to be. Understand if you’re 50% below the market, that means you have to raise rates 100%, just to get back up to market price,” Brandes stated.

Citizens finally ends up cheaper than others as a result of different insurers can request price will increase from the Office of Insurance Regulation of 10, 15, 20% per yr in the event that they select.

Those will increase are sometimes permitted, as a result of insurers would go below in the event that they weren’t, in accordance to the state.

Right now, Citizens is simply allowed to enhance a sure proportion per yr till they attain 15% in 2026 and past, a spokesperson from Citizens advised News 6.

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