Legislature Takes First Steps On Insurance Reform

STANDING UP FOR AFFORDABLE PROPERTY INSURANCE—Skyrocketing insurance prices coupled with escalating property taxes are driving many Floridians out of their homes. Lawmakers must focus on making insurance more affordable during the upcoming legislative session.

This year, Florida PIRG began working with an insurance reform coalition consisting of homeowner organizations, condo associations and consumer groups, together representing over several million Floridians.

In January, Florida PIRG worked with lawmakers to pass legislation that was a good first step toward solving the state’s insurance crisis.

This legislation will require insurers to pay claims within 90 days, prevent insurers from “cherry-picking” which types of coverage they offer and stop builders from using weaker structural standards in Florida’s Panhandle. Reluctantly, legislators revisited the insurance issue in April, largely due to pressure from the governor, and passed another bill (SB 2498).

This legislation will make it more difficult for new insurers to create state-only subsidiaries that allow them to hide their profits with national parent companies, putting an end to requests for rate increases that use economic hardship as a justification. This bill contains provisions that will make Citizens Property Insurance more competitive, which will bring rate-relief to many Floridians.

SB 2498 is heading to the governor’s desk where he is sure to sign it.