Florida lawmakers are taking aim at the state’s skyrocketing property insurance costs with new legislation designed to bring relief to homeowners and businesses. Senator Don Gaetz (R-Crestview) and Representative Alex Andrade (R-Pensacola) have introduced SB 554 / HB 451, a bill that seeks to improve the claims process, increase rate transparency, and hold insurance companies accountable.
“Floridians pay far more for property insurance than anyone anywhere else in the nation,” said Senator Gaetz and Representative Andrade in a joint statement. “Admittedly, Florida is a high-risk market, but we believe there are steps the Legislature can take to improve how rates are set and how individual claims can be processed faster and fairer.”
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The lawmakers highlighted the impact of high insurance costs on Florida residents, including seniors, young families, and businesses. “High property insurance rates are one of the reasons in-migration has slowed,” explained Senator Gaetz. “High insurance costs make the Free State of Florida into the Unaffordable State of Florida for many.”
Key Provisions of the Bill:
- Prompt Payment of Claims: Requires insurance companies to pay claims promptly.
- Streamlined Adjustment Process: Aims to eliminate delays and ensure fair settlements by requiring adjusters to share damage assessments quickly and utilize software that incorporates current market costs for repairs.
- Increased Transparency: Mandates that insurance companies seeking rate increases disclose any self-dealing with related companies and reveal executive compensation packages.
- Enhanced Penalties: Increases penalties for insurance companies that delay payment of settled claims.
- Fairer Litigation Costs: Establishes a system for insureds and insurers to share litigation costs.
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The bill aims to address concerns beyond excessive litigation, which has been the focus of previous legislative efforts. “Our bill tackles other drivers of insurance costs and provides a transparent framework for honest rate-setting and prompter payments,” said the sponsors of the bill.
While acknowledging that there is no single solution to the complex issue of rising property insurance costs, Gaetz and Andrade believe this legislation will bring much-needed reform to the industry and provide relief to Floridians.
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