Florida's Perfect Storm

The Florida Homeowners Market is in full crisis mode with access to homeowners insurance quickly slipping from the grasp of many Florida residents due to a “perfect” storm.  Many homeowners are now finding insurance impossible to secure or afford as many insurers in the state have pulled back on providing coverage in the state, seven have completely pulled out of the state, many others have requested significant premium increases, two have become insolvent with several others in dire financial straits and possibly facing regulatory action against them.  

Legislative attempts to fix this “perfect” storm have not been successful to date, although several bills have recently passed a key Senate Subcommittee that would help to address some of the issues.  Senate Bill 1728 would make several changes, most notably allowing insurers to pay roof claims based upon actual cash value of the roof instead of full replacement value except for damage due to hurricanes.  Senate Bill 186 is designed to help shore up the insurer of last resort, Citizens Property Insurance Company, by making it harder for seasonal or secondary home owners in the state to qualify for continued coverage under Citizens if another insurer will write the property at slightly or moderately higher premiums.