16-05-2025
Florida's home insurance crisis: The search for solutions
The Brief
Policymakers and consumer watchdogs are proposing several reforms when it comes to home insurance in Florida.
Some want to scale back development in areas most likely to be damaged by a hurricane.
FOX 13's Craig Patrick has a 30-minute special airing on May 26.
TAMPA - As Florida homeowners pay comparatively higher premiums and many complain about how their damage claims are handled, policymakers and consumer watchdogs are proposing several reforms.
Dig deeper
Some want to scale back development in areas most likely to be damaged by hurricanes. Others want to reverse lawsuit reforms that make it harder to sue insurance companies, while the state insurance commissioner wants to stay the course.
He said rates are leveling off and some are going down slightly as new companies enter the market.
"Things are going pretty well. We are seeing improvement," said Florida Insurance Commissioner Michael Yaworsky. "We are seeing that stability has emerged throughout the marketplace."
However, new companies are getting much of their business by taking existing policies from state-run Citizens. They're getting customers with no marketing costs and no agent commissions. We don't yet know to what extent they'll continue to compete in the private market as the insurance commissioner hopes.
Meanwhile, some call for revisions in state administration. Currently, the Florida Office of Insurance Regulation investigates the industry, while the Florida Department of Financial Services investigates contractor fraud.
RELATED: Florida's home insurance crisis: Investigating the risk, cost of underinsured homes
What they're saying
"Those should probably be combined into one entity. They should be focused on identifying fraud wherever they can," said Florida Policy Project President Jeff Brandes.
Consumer watchdogs suggest increased oversight of insurance companies.
They want them to disclose their profits, executive compensation, and insurance company payments to sister companies and ownership groups.
They also want homeowners to get more information about their claims, including any internal revisions to their estimates, with the reason 'for' any revisions.
Those are just a few examples that state lawmakers could take up to address the costs of home insurance and the problems in Florida.
What's next
Watch our 30-minute special Monday, May 26 at 12:30 p.m. for a closer look at the causes of Florida's home insurance crisis and potential solutions.
The Source
FOX 13's chief investigator, Craig Patrick, gathered the information for this story.
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