JACKSONVILLE, Fla. — Florida lawmakers are discussing proposed property insurance legislation during the special session this week in an effort to stabilize costs and steady the insurance market in a state where homeowners pay the highest insurance premiums in the country, nearly three times the national average -- and those rates are increasing about 33 percent a year.
Florida homeowners like Keith Cawthern dread hurricane season. His neighborhood here off old St. Augustine road is prone to flooding and wind damage.
“I’ve had a couple of other roof leaks in the past, the home was built in 2006 and it is the original roof so we’ve had some patching of our roof," Cawthern, a homeowner of 16 years, said.
Two months ago he battled clogged drains and a flooded parking lot after back-to-back tropical storms.
“I had a little bit of roof damage, but thankfully, my HOA they actually covered the roof so I did not have to worry about filing a claim or paying for any repairs," Cawthern said.
For homeowners without an HOA handling their insurance, navigating the claim process can mean dozens of adjusters, hundreds of out-of-pocket costs, and months waiting for claims to go through.
There are two bills on the floor, House Bill A1 and Senate Bill 2A that lawmakers believe will help. The bills would bring multiple changes including;
- Create a 1 billion dollar taxpayer-funded reinsurance program for insurance companies.
- Reduce the time homeowners can file a claim and the time insurance companies have to decide whether to pay or deny claims.
- Require homeowners who use citizens property insurance --to move back to private insurance if they receive an offer that is 20 percent higher than the citizens' rate.
However, insurance experts caution that the bill will mean policy holders have less time to navigate an already difficult insurance process.
“You could have the best claim in the world, but if you don’t submit it within 1 year as this law propose, your done, you can not get the money, so this could detrimentally impact the elderly, handicap. People who have a hard time identify their claims," Andreas Study, an attorney with Farah and Farah, explained.