By Gary Rohrer
FloridaPolitics.com
March 8, 2022
“If we do nothing, your constituents are going to proceed to undergo.”
The Florida Senate on Thursday handed SB 1728, a invoice aimed toward decreasing property insurers’ prices associated to claims. It’s a measure supporters say is required to halt rampant price will increase for householders, however derided by opponents as a dangerous revision that can enhance prices for householders whereas decreasing the protection they obtain.
The vote was 28-11, with 5 Democrats becoming a member of Republicans in assist. Sen. Gary Farmer, a Lighthouse Level Democrat, led opposition to the measure, saying he was uncertain it should decrease charges for householders and will hamper their potential to get a declare paid to restore their residence.
“It’s at all times a unique excuse for the insurance coverage trade,” Farmer stated. “You’re speaking about folks’s largest funding of their lives.”
Invoice sponsor Sen. Jim Boyd, a Bradenton Republican, defended the measure as important to decreasing prices associated to claims, which might, in flip, cut back stress on charges.
“If we do nothing, your constituents are going to proceed to undergo,” Boyd stated.
However the invoice may wrestle to get by way of the Home.
Home Speaker Chris Sprowls, a Palm Harbor Republican, on Wednesday sounded skeptical about the necessity to go one other main property insurance coverage reform, after lawmakers handed SB 76 final yr, which diminished attorneys charges in some instances.
“I’m additionally cognizant of the truth that we simply handed a really important insurance coverage invoice final Session,” Sprowls stated. “If what has been instructed to me within the eight years I’ve been right here from the insurance coverage foyer is true, which is that it takes 18 months to see an affect in charges — which is what I’ve been instructed over and again and again — then I don’t assume we’re but seeing the affect we’re having in charges by the invoice we handed final yr.”
Sprowls didn’t rule out passing a property insurance coverage invoice, however his lack of urgency stands in distinction to Senate leaders, who’ve pressed the necessity to go one thing within the face of an insurance coverage market recurrently described as in “disaster.”
Many firms have acquired giant price will increase, 5 firms have canceled 110,000 insurance policies within the final 12 months, and St. Johns Insurance coverage Co. simply went into receivership.
The state of affairs led Senate President Wilton Simpson, a Trilby Republican, to declare final month the Legislature “could have failed our residents” if nothing is completed to deal with the state of affairs.
Boyd stated Gov. Ron DeSantis’ workplace has taken an curiosity within the problem and gave enter on some elements of the invoice.
“It’s a problem that’s essential to him,” Boyd stated. “He understands the gravity of the problem and all of our constituents and what they’re paying for his or her householders’ insurance coverage.”
Insurers report giant losses associated to frivolous claims or claims with solely superficial harm, in addition to a surge in lawsuits stemming from claims as the primary causes for his or her losses in Florida.
The invoice accommodates a number of provisions aimed toward limiting these losses, particularly on roof harm claims, in addition to getting Residents Property Insurance coverage, a state-run insurer, to shed insurance policies and get personal firms to take the insurance policies.
Boyd’s invoice would require contractors issuing commercials to inform prospects they’re chargeable for deductibles, and that deliberately submitting a deceptive or false declare is insurance coverage fraud. It additionally additional frees unregulated out-of-state insurers, generally known as surplus strains firms, to just accept insurance policies from state-run Residents Property Insurance coverage by loosening their price necessities.
Different provisions would require the choose members of Residents’ board to have no less than 10 years expertise within the property insurance coverage trade; requires Residents prospects to maneuver to the personal market in the event that they obtain a suggestion lower than 20% of Residents’ price; permits second houses to be topic to bigger price will increase from Residents; permits insurers to require a particular deductible for roof damages; and permits insurers to get well “cheap lawyer charges and prices” if a lawsuit is dismissed as a result of a litigation discover wasn’t filed in time.
Amendments provided by Democrats on Thursday to take away the lawyer charge provision and to take away the roof deductible provision have been rejected by Republicans.
It stays unclear if the Home will take up the problem within the remaining eight days of the Legislative Session.
“I’m optimistic that (the Home will) contemplate what we’ve finished after which we’ll speak about how one can fine-tune it as we transfer ahead,” Boyd stated. “If we do nothing … the market will worsen, charges will proceed to go up. We simply can’t proceed to let that occur to Floridians that we’re right here to characterize.”