If you’re a Florida resident, or if you simply follow our social media, you’ve undoubtedly heard about the homeowners insurance crisis happening in Florida. Recently, Florida officials have been gathering to come up with solutions to fix this problem in our state. So far, they have passed two bills that are aimed to fix this problem, but experts say that it will still take time for this issue to be truly fixed.
The two bills that were passed were senate bill 4-A and senate bill 2-A. One of these bills provides millions of dollars in disaster relief to residents who have been affected from the recent Florida hurricanes. The other bill is a property insurance reform that has a goal of stabilizing the Florida market by strengthening consumer protections and increasing competition.
Apparently one cause to the state of Florida’s market is litigation. And unfortunately, certain law firms and contractors are against these attempts to fix the market because they have actually benefited from the chaotic state is has been in. Having important people against the efforts is the first reason that the process may be slower in fixing.
The next factor that is affecting and slowing down the process is reinsurance. According to a financial advisor, reinsurance is shrinking the market because insurance companies use this to protect their balance sheets. Because this is necessary and expensive, the costs may be passed down the policy holders, which still puts them in a bind of having higher rates than they deserve.
It is said that Florida residents will not be seeing any improvement in the market this year, but there is hope for the near future. More bills are being passed and officials are accepting feedback and input from Florida residents. Continue following along with our social media posts and blog posts as we keep our followers updated. As always, contact an agent with any questions or concerns about the homeowners insurance market or anything else regarding insurance or finances!
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