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Lawmakers consider intervention after homeowners
insurance companies leave Florida |
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Article Courtesy of WINK NEWS
By Lauren Leslie
Published
February 23, 2022
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WATCH VIDEO |
Homeowner’s insurance companies
are raising rates, dropping clients, or moving out of Florida. Now,
lawmakers are considering a plan to get the rates under control.
Fraud and frivolous lawsuits are forcing insurance companies from
servicing Florida homeowners, and that is according to the insurance
companies.
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On Tuesday, Lighthouse Property Insurance
announced that it would stop writing new policies. This
change will be effective at the end of this month. This
issue is affecting millions of Floridians, and it has
lawmakers’ attention.
The price to insure your home is rising. Ken Skelton owns a
home in Collier County. “It went up $1700,” Skelton said.
Homeowners are being forced to pay these increased premiums
or find another provider. This is something Skelton and his
neighbors are worried about.
“I’ve seen a lot of talk on next-door
about everybody’s insurance going up, and they’re like
panicking to find affordable insurance,” said Skelton. Or
any coverage at all.
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Homeowners across the State of Florida are receiving letters that are
notices of nonrenewal. WINK News report Lauren Leslie says her mother
received one.
Why? Companies are trying to reduce overall exposure due to catastrophic
loss. Insurers say that fraud and frivolous lawsuits are to blame.
This issue has gotten the attention of lawmakers like U.S.
Representative Byron Donalds (R-Florida). “Of all the things that is
great about Florida our court system is not the one. It’s a very bad
system. A lot of frivolous lawsuits, and it’s incumbent upon the
legislator to get this cleaned up,” said Rep. Donalds.
And, it is an issue that state lawmakers say they’re working on. Florida
Senator Jeff Brandes tweeted on Tuesday that four insurance providers
have told regulators they can’t continue writing coverage here in the
last three weeks.
“The one thing that is very concerning to me is if we’re losing carriers
at this speed,” Donalds said.
Lawmakers are seriously considering giving property insurance policies
more flexibility to get these rates under control.
Much of this deals with storm damage, and a bill in the Senate would
allow companies to offer policies only paying a depreciated value of,
say, a roof or the actual cash value it was worth when damaged.
The idea is that it would lower your monthly premium, but you’d pay more
in repair costs.
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