Starting July 1st, it became harder for individuals to take insurers to court in Florida. In addition, policyholders that have state-owned Citizens Property Insurance will more than likely see rates increase which could put a strain on some due to the economy.
These changes come from a new bill that Governor Ron DeSantis signed into law the earlier part of this year. While there is some debate about this bill and what its purpose is, the governor believes that this will help to control costs and hopefully bring more insurers into Florida.
Here are a few things you need to know about the insurance changes.
Why did lawmakers push for this law?
It is no secret to homeowners that insurance is needed because hurricane season does strike every year in this state. That is why it’s becoming more and more expensive to insure your home as catastrophe strikes. However, insurance companies are also having to spend a great deal of money when it comes to defending claims, investigating potential fraudulent claims, or even just obtaining legal counsel to defend themselves. That is why homeowners are feeling the brunt of the burden in their increasing prices. It is being added on to your overall costs. The new law is supposed to provide a cushion on both sides.
What changes will homeowners see in their personal policies?
The goal is for homeowners to see an increasing number of insurance companies in Florida or additional options beyond what they had before for coverage. The bill should create an environment that seeks to stabilize some of the costs that insurance companies feel so they have a cushion. Also, the hopes are that those insurance companies that decided to pull out from Florida will have incentives to return, feel more comfortable with the cost of doing business in Florida overall, and create a more vibrant and alive private insurance market that benefits everyone. However, this is just a goal, and it may take time.
What’s changing for people who have policies with Citizens?
For those that have Citizens Property Insurance, you can expect that premiums will increase faster than the previous allowed 10% per year. This new bill will pave the way for an 11% and then 12% (the following year) increase. That will ultimately motivate people to leave citizens insurance and start shopping in the private sector. And with more options, hopefully, they won’t have to look for a last resort which happened in previous years.
If you need help navigating the insurance waters, we’re here to help you. Call us today.