Proposed Florida law could reshape hurricane insurance

FLORIDA – A new bill under consideration in Florida could change how residents insure their homes against hurricanes.

Bạn đang xem: Proposed Florida law could reshape hurricane insurance

RELATED: Citizens Property Insurance is seeing a decrease in policy count. Why experts say this is a ‘huge step toward stability’

House Bill 13 proposes making Citizens Insurance available to all property owners, but with a key caveat: it would only cover windstorm damage.

Xem thêm : Asbury Biergarten closed for good, cites insurance coverage, rent hike

The proposed change comes as Florida’s property insurance market shows signs of stabilizing after years of turmoil. The 2024 hurricane season, which caused an estimated $500 billion in damage across the U.S., highlighted the need for streamlined coverage options for homeowners.

If the legislation passes, Citizens Insurance, a state-backed provider, would exclusively handle windstorm claims. Homeowners would need a separate policy for other perils.

RELATED: Citizens Property Insurance denied 77% of Florida homeowners’ claims from Hurricane Debby, new data shows

“They would have their homeowner’s policy that covers everything unrelated to wind, like water damage from plumbing or appliance leaks, fire, lightning, vandalism, theft,” Matt Carlucci Jr., an insurance agent with Brightway Insurance said.

While the bill could simplify windstorm coverage by consolidating risk statewide, Carlucci noted potential drawbacks. One concern is the possibility of higher deductibles that could strain homeowners financially.

Xem thêm : Thornton Township, Illinois Supervisor Tiffany Henyard misses meeting on lapsed insurance

“If Citizens sets deductibles too high, some homeowners might struggle to afford coverage,” he explained. “Private insurers might step in with supplemental policies, but there’s no guarantee.”

Sponsored by Rep. Hillary Cassel (D-Broward County), the bill mirrors aspects of California’s state-run insurance model, which led to lower rates for homeowners there. However, its impact in Florida remains uncertain.

“Logistically, there could be confusion,” Carlucci said. “But overall, I don’t think it’s a bad idea.”

Rep. Cassel was unavailable for comment on the legislation, which is expected to be introduced during the upcoming legislative session.