{"id":6367,"date":"2022-03-30T15:07:08","date_gmt":"2022-03-30T20:07:08","guid":{"rendered":"https:\/\/nwfl4sale.com\/desantis-we-need-to-do-more-on-insurance\/"},"modified":"2022-03-30T15:07:08","modified_gmt":"2022-03-30T20:07:08","slug":"desantis-we-need-to-do-more-on-insurance","status":"publish","type":"post","link":"https:\/\/nwfl4sale.com\/desantis-we-need-to-do-more-on-insurance\/","title":{"rendered":"DeSantis: We Need to \u2018Do More\u2019 On Insurance"},"content":{"rendered":"
<\/p>\n
More needs done to fix Fla.\u2019s property insurance market, and the governor expects the Legislature to \u201chave another bite of the apple very, very shortly.\u201d<\/span><\/span><\/p>\n<\/div>\n TALLAHASSEE, Fla. \u2013 Gov. Ron DeSantis expects lawmakers to make changes in Florida\u2019s troubled property-insurance system sometime this year, at the latest after the November elections.<\/span><\/span><\/p>\n DeSantis did not include property insurance issues as part of a special session that he called Tuesday on congressional redistricting, leaving a decision on insurance to legislative leaders. But he said more legislative action is needed after lawmakers passed a property insurance bill in 2021.<\/span><\/span><\/p>\n The House and Senate could not reach agreement on an insurance plan during this year\u2019s regular session, which ended March 14. Property insurers have sought major rate increases and shed customers to reduce financial risks, with two insurers recently placed into state receivership.<\/span><\/span><\/p>\n \u201cThere is going to be a need to do more legislative reforms, and we were very clear about that during the (2022) session,\u201d DeSantis said during a state Cabinet meeting Tuesday. \u201cYou know, we may have another bite of the apple very, very shortly. But we need to just understand that there is going to be a need for the Legislature to do more.\u201d<\/span><\/span><\/p>\n DeSantis told reporters after the meeting that any changes \u201cwill not wait until the actual session in 2023. It will be done this year.\u201d<\/span><\/span><\/p>\n Insurance Commissioner David Altmaier told DeSantis and Cabinet members his office is taking steps to help address roof-damage claims, which insurers say play a major role in the financial problems. Also, he said the market is approaching a \u201ccritical couple of months,\u201d as insurers purchase reinsurance \u2013 backup coverage that plays an important role in such things as hurricane claims.<\/span><\/span><\/p>\n \u201cReinsurance companies don\u2019t mind paying claims. They do mind paying claims that are three times as much as they thought that they were going to be,\u201d Altmaier said. \u201cThat makes Florida not an attractive place for them to deploy their capital. And that\u2019s a bad outcome for consumers as well.\u201d<\/span><\/span><\/p>\n In 2021, lawmakers approved changes that included a new formula to limit fees of attorneys who represent homeowners in lawsuits against insurers and a reduction from three years to two years in the time to file claims. They also passed a proposal aimed at preventing roofing contractors from advertising to spur homeowners to file insurance claims, though a federal court has blocked that part of the law on free-speech grounds.<\/span><\/span><\/p>\n The law also allowed larger rate increases for customers of the state-backed Citizens Property Insurance Corp., which is often able to charge less than private carriers.<\/span><\/span><\/p>\n Last week, Citizens President and CEO Barry Gilway projected his company could have more than 1 million policies by the end of this year, as it adds roughly 5,500 policies a week. As of last week, Citizens had 801,341 policies, up from 570,000 a year ago.<\/span><\/span><\/p>\n In this year\u2019s session, the Senate wanted to take a more aggressive approach than the House in trying to bolster private insurers. For example, the Senate proposed allowing new deductibles of up to 2% on roof-damage claims \u2013 an outgrowth of complaints by insurers that questionable, if not fraudulent, roof claims are driving up costs. As an example, under the Senate proposal, a homeowner with $300,000 in overall coverage could have faced a $6,000 deductible to replace a damaged roof.<\/span><\/span><\/p>\n But the House rejected the idea, which would have led to increased out-of-pocket costs for homeowners who need to replace damaged roofs.<\/span><\/span><\/p>\n DeSantis said Tuesday he supported the Senate efforts.<\/span><\/span><\/p>\n \u201cNow, what the Senate was working on, we were very supportive of that. But basically, that ran into a brick wall in the House,\u201d DeSantis said. \u201cAnd so, if the House is willing to entertain it, then they should absolutely do it.\u201d<\/span><\/span><\/p>\n DeSantis said he\u2019s optimistic about insurance changes after talks with incoming Senate President Kathleen Passidomo, R-Naples, and incoming House Speaker Paul Renner, R-Palm Coast. Both will move into the leadership posts after the November elections.<\/span><\/span><\/p>\n \u201cI am pretty confident, through my conversations with both Senator Passidomo and Speaker-designate Renner, that this will absolutely become a reality,\u201d he said.<\/span><\/span><\/p>\n Current Senate President Wilton Simpson, R-Trilby, told reporters on March 11 the Senate had a \u201cpretty good bill\u201d on property insurance and that there\u2019s a chance lawmakers would be called back to Tallahassee as \u201cwe have many companies going out of business.\u201d But those comments followed Simpson saying the property insurance changes made during the 2021 session need time to take hold.<\/span><\/span><\/p>\n