Article
Courtesy of News Channel 8 On Your Side
By
Mahsa Saeidi
Published March 27, 2022
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TAMPA – Hundreds of homeowners are turning to 8 On Your
Side after seeing their property insurance rates soar. The homeowners are
upset because it appears to them that Florida lawmakers are doing nothing
about it.
No proposals passed during the 2022 legislative session and now, a special
session to tackle the problem seems less likely.
Two entities can call for a special legislative session in Florida: Governor
Ron DeSantis or leadership in the Florida House and Senate.
Speaking Monday in Wellington, Gov. DeSantis said he ‘would welcome’ a
special session on insurance reform and also new condo safety measures in
the aftermath of the Surfside building collapse.
However, the governor seemed to leave it up to lawmakers to decide whether
to return to Tallahassee and tackle the issues.
Robert Schnorf is a retiree in Pinellas County. He just found out his rate
will jump from about $3,314 to $5,056. That’s nearly $1,800 more a year.
“I try to do things to minimize my monthly living expenses and things just
happen out of the blue that I have no control over,” Schnorf said.
This weekend, other homeowners across Florida emailed 8 On Your Side
Investigator Mahsa Saeidi with a similar story: Their rate is dramatically
increasing or their policy is being dropped.
On Friday, State Sen. Jeff Brandes said it’s time for Gov. DeSantis to call
a special session for insurance reform.
On Monday, Gov. DeSantis signaled that he welcomes a special session but it
doesn’t sound like he’s issuing a directive to force lawmakers back to work.
“I would welcome that, I think the legislature just didn’t come through with
it. If they can get an agreement, they should do it. I’m confident we’re
going to see something along those lines at some point.. within the next
year,” Gov. DeSantis added. “I’ve got a pen ready. And so, if they do it,
we’ll be very receptive to that.”
Leadership from the Florida Senate and House of Representatives could also
issue a joint call for a special session.
Investigator Mahsa Saeidi reached out to the office of State Sen. Wilton
Simpson and Speaker of the House, Rep. Chris Sprowls.
“I wanted to know if they were planning on doing that,” said Saeidi.
Representatives for Sen. Simpson and Rep. Sprowls had no additional comment
but they did point to prior statements from the legislators.
Speaking to reporters on March 11, Sen. Simpson seemed open to a special
session.
“There’s a possibility. We have many companies going out of business, it’s
certainly a crisis,” said Sen. Simpson.
It’s a crisis that’s hitting families across the Tampa Bay area. Schnorf
says the dramatic spike in price just isn’t fair.
“The last time I made a homeowner’s claim was in 1992,” he said.
He says his neighbors are also seeing their rates spike. Some, who don’t
have a mortgage, are thinking about dropping their insurance altogether and
self-insuring.
In 2021, lawmakers approved a series of changes to try to reduce the number
of lawsuits in Florida, and that includes a formula to limit the fees of
attorneys. But homeowners aren’t seeing an impact yet.
A spokesman for Gov. Ron DeSantis sent Saeidi the following message late
Monday:
“Governor DeSantis remains committed to the goal of stabilizing insurance
rates and continuing to work for the consumer. Governor DeSantis is
monitoring the stability of the insurance market in real-time, and closely
working with Commissioner Altmaier and insurers to gauge the health of the
industry. Insurers are receiving their reinsurance quotes now for coverage
for the upcoming hurricane season, and as those insurers receive those
quotes, we will have a better understanding of the health of the market.
As I’m sure you are aware, in 2019, 8.6% of all property insurance claims in
the U.S. were filed in Florida, yet 76.45% of all property insurance
litigation in the U.S. occurred in Florida.
Recognizing this, during the 2021 legislative session, the Legislature
passed, and Governor DeSantis signed Senate SB 76 which significantly
reformed the litigation environment in Florida by changing the way attorney
fees are awarded in disputed insurance cases. At the time, it was stated
that it would take potentially two years to feel the impact of that bill,
because pending litigation does not fall under the changed law nor do
insurance claims for a loss that preceded the bill’s effective date. Many of
the insurance companies in Florida are still saddled with the tailing
litigation stemming from recent hurricanes, most notably Hurricane Irma. But
as a result of the reforms we have implemented thus far, we are seeing some
new companies coming into the market.
The Governor has consistently pressed the legislature to enact substantive
insurance reform. In addition to pushing for the attorney fee reform in SB
76, in 2019, Governor DeSantis pushed for reform of assignment of benefit (AOB)
claims and signed HB 7065 into law. He has also appointed over 100 judges
and 5 Supreme Court justices who are having a meaningful impact to reduce
frivolous litigation. Additionally, he has publicly stated he supported some
of the measures the Senate was considering during the 2022 legislative
session, but none of them passed.”
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