Article
Courtesy of Channel 4 CBS Miami
By
Staff Team Report
Published April 22, 2022
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MIAMI – Gov. Ron DeSantis said Monday he will call a May
special legislative session to address problems in the property-insurance
system that have led to homeowners losing coverage and getting hit with
large rate increases.
DeSantis made the
announcement during an appearance in Jacksonville but did
not immediately specify the dates for the session. The
announcement came a day before lawmakers gather for a
special session to redraw congressional districts.
DeSantis indicated the insurance session would try to “bring
some sanity and stabilize and have a functioning market.”
“I’m confident that we’re going to be able to get that
done,” DeSantis said while announcing money for a new trauma
center at UF Health Jacksonville. “I am not confident we’d
be able to punch it through this week. But what I will be
signing this week is a proclamation to set the dates for a
special session in May. We’re going to work with the
legislative leaders on those dates, and it will have as the
main focus the reform of the property-insurance market.” |
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DeSantis said the special session could address other
issues that did not get resolved during the regular legislative session,
which ended March 14. Among the high-profile issues that did not pass were a
plan to put additional requirements on condominium buildings after the
deadly collapse last year of the Champlain Towers South building in
Surfside.
The House and Senate were at odds during the regular session about how to
address the property-insurance problems, with the Senate trying to be more
aggressive in bolstering private insurers.
As an example, the Senate proposed allowing new deductibles of up to 2
percent on roof-damage claims — an outgrowth of complaints by insurers that
questionable, if not fraudulent, roof claims are driving up costs. But the
House rejected the idea, which would have led to increased out-of-pocket
costs for homeowners who need to replace damaged roofs.
House Speaker Chris Sprowls, R-Palm Harbor, also said lawmakers should give
more time for property-insurance changes made in 2021 to fully take hold.
But troubles have continued in the insurance market, with companies shedding
policies and seeking hefty rate increases because of what industry officials
say are large financial losses. Two insurers, St. Johns Insurance Co., and
Avatar Property & Casualty Insurance Co., have recently been placed in state
receivership because of insolvencies.
Part of the fallout also has led to thousands of homeowners a week obtaining
coverage from the state-backed Citizens Property Insurance Corp., which was
created as an insurer of last resort. Citizens had 817,926 policies as of
March 31 and is expected to top 1 million by the end of the year.
“It’s insane!” Hollywood homeowner Jose Rosario said.
He’s desperate for some relief in property insurance.
“It’s very frustrating. As a matter of fact 2 weeks ago we received a bill
that my escrow account was going to be depleted an addition $400, one was
for taxes, one was insurance,” Rosario said.
Homeowners insurance which is up about 25 percent from last year. Property
insurance attorney John Tolley said homeowners are hurting.
“I’m getting calls from clients daily at this point all throughout Florida
saying, ‘I can’t get insurance’ or ‘I’m getting a notice of non-renewal’ or
‘the insurance company is requiring me to replace this roof prior to
allowing me to renew the policy,’” he said.
Carolyn LePage has lived in her house in Hollywood for more than 30 years.
“It’s very frustrating, not only are the rates going up, it’s hell to try to
get somebody to cover something,” LePage said.
She has a state-run insurance plan, she doesn’t have a choice. She’s seen
her policy skyrocket.
“I’ve noticed that our insurance has gone up in the past 2 years almost 20%.
I spend almost $1,800 6 times a year for my insurance,” she said.
She’s hoping a special session will bring change and lower rates.
“I would certainly hope that they reassess and evaluate, especially the
state plan. We should still have options, similar to health insurance, you
go to the marketplace, but you should be able to have options,” she said.
State leaders have long sought to shift policies out of Citizens into the
private market, at least in part because of concerns about financial risks
if the state is hammered by a major hurricane or multiple hurricanes.
Before DeSantis’ announcement Monday, Sen. Jeff Brandes, R-St. Petersburg,
launched an effort to try to force a special session on insurance issues.
Brandes used a procedure to poll lawmakers about supporting a session.
Lawmakers faced a noon Monday deadline to respond, with results expected to
be released later Monday.
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