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Property Insurance Reforms Fall Far Short of What is Needed

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The Florida State Assembly held a special session shortly before Memorial Day to address the growing crisis in the state’s property insurance industry. However, the modest “reforms” passed during the three-day session do not significantly strengthen the system at stake.

The idea that a three-day session creates some sort of silver bullet solution to a complex crisis is less confident, especially given the fact that lawmakers went nowhere on this issue in the 60-day annual session. Did not stimulate. Many of their members’ greatest concerns.

Notable during the session was a detailed investigation of all sorts of hard data on industry issues and expert testimony from industry experts and regulatory panels. Florida’s consumer advocacy groups, the Financial Services Authority and the Insurance Regulatory Authority itself, were found nowhere in most proceedings and frustrated many lawmakers who wanted a better understanding of crisis and reform options.

At one pesky moment, the Senator asked if anyone from the Insurance Regulatory Department was present. Insurance commissioner David Altmaier was behind the room and raised his hand. During such sessions, he said, state insurers, usually front and center and ready to answer questions, seemed to avoid that role.

Members of the Diet finally passed almost the same law announced by each chamber of commerce shortly before the session.

The new law prohibits insurance companies from refusing to cover some homes solely on the basis of dilapidated roofs.

The new law also plans to revive the 2006 program, which provides homeowners with a home stormhardence of up to $ 10,000. The program, called My Safe Florida Home, has been plagued by incompetence and fraud in the past, but no accountability measures have been discussed to prevent further problems. It also raised $ 150 million, about 40 percent less than the state’s promise of $ 250 million in 2006.

On the industry side, the law provides a $ 2 billion reinsurance pool of reinsurance for hurricane losses just below the essentials of the Florida Hurricane Catastrophe Fund, ensuring that eligible insurers participate in the program. It is obligatory. It also limits the amount that lawyers can collect in proceedings against an insurance company that is already in dispute. In a proceeding.

It is worth noting that no analysis has been done on how the law affects homeowner rates. State officials predict that it will take at least 18 months if consumers are likely to see price cuts.

Florida has achieved record growth, offering a sea of ​​real estate and development-related cash that has generated record budgets. But without a viable one, not to mention a healthy real estate insurance market, the golden geese will not last long.

Measures taken in a hurry before the vacation simply do not cut it. Our own senator and local insurance mogul Jim Boyd (R-Bradenton) is a senator dignitary on insurance reform. Boyd said he had asked Senate leadership to hold a summer workshop to further investigate the issue. Great, maybe they will actually delve into the essence of the problem, but the next hurricane season will come to us long before it reaches reform.

Florida parliamentarians have wasted much of this year’s session, softening Governor Ron DeSantis’ appeal to the cultural war bill. Almost all of them failed to solve the actual problems faced by a significant number of citizens. 2024 presidential primary.

When it comes to lean meat that’s useless to throw at mobs, Florida lawmakers are one of the best in business. But when it comes to rolling up their sleeves and doing the real hard work of running a large, populous state in the 21st century, they simply don’t have the necessary determination. This crisis, as in most cases, can be a complete catastrophe before a serious effort begins, at which point it can be too late.

click here To see a thorough review of what is included in the new law.

Dennis “Mitch” Maley is the editor and columnist of The Bradenton Times. Weekly podcast.. She has over 20 years of experience as a journalist and has been in charge of the Manatee County Government since 2010. He graduated from Shippensberg University and later served as the captain of the US military.click here Because of his career. His 2016 collection of short stories, Casting Shadows, has recently been reissued and is available. here..


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