TALLAHASSEE, Fla. — Florida’s top insurance officials think the state’s property insurance market is better than it has been in years— ahead of a predicted “hyperactive” hurricane season. But where they see improvement — others find frustration as high rates and little relief continue.
The experts at the National Hurricane Center are estimating up to 25 named storms this hurricane season, which lasts through November. That is worrisome by itself but takes on added concern when you consider Florida’s still teetering insurance market.
Homeowners are still getting premium bumps as well, like Debbie Winter — who saw a big increase. That's despite living in Loxahatchee, more than 12 miles from the Florida coastline.
“This year it went up another 97% to 14,700,” Winter told WPTV recently. “We’re to the point where we’re on fixed income. What do you do— between all the other bills that pile up on top of this?”
As homeowners pinch pennies, Florida leaders are trying to ease concerns, saying the market as a whole is looking better these days.
“The insurance market right now in the State of Florida is better than it's been in the last three years,” said Florida Chief Financial Officer Jimmy Patronis.
Patronis has been traveling the state recently, hosting insurance roundtables with stakeholders and touting what he sees as recovery following waves of reform by the GOP-controlled legislature. Among their biggest changes, tort reform, which cut incentives to sue insurers and curb Florida’s glut of litigation.
Patronis said trends are headed in the right way, listing several highlights:
- Florida has eight new companies writing policies.
- It’s refueling a home-hardening grant program, that can cut rates.
- Plus, he said, about half of carriers applying for rate changes this year are asking for decreases.
“All these are a recipe for the environment we're seeing right now where instead of seeing 20 to 30% rate increases,” the Republican said. “We're seeing 8 to 10% rate decreases.”
Industry experts agree that the signs are positive. At the very least, they think stabilization is near. But— rate changes, in the short term, will probably remain flat for many or continue to bump up slightly.
That’s as critics hammer Republicans for not doing more drastic reform. Many of the legislature’s Democrats have sought rate caps or increased market regulation.
Officials from the state party, meanwhile, note taxpayers might be on the hook for billions if the state-backed insurer of last resort, Citizens, takes a major hit. Though the carrier is trying to shed policies— and become less competitive with the private market, Citizens still holds more than 1.1 million policies as of April— an exposure of over $520 billion.
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