property insurance
Senate Bill 2-A requires every residential policy to have flood insurance as a condition of having coverage from Citizens, but they’re implementing it in phases. For those in a FEMA-designated flood zone, new policy holders had to get flood insurance by April 1 and any policy renewals have until July 1, 2023.
Effective 1/1/24 all Citizens policy holders in ANY flood zone above $600k in dwelling must obtain flood insurance
1/1/25 500k and higher
1/1/26 400k and higher
1/1/27 300k and higher
1/1/28 200k and higher
Florida passed a new law in December seeking to stabilize the property insurance market.
The new law will create a $1 billion reinsurance fund, put disincentives in place to prevent frivolous lawsuits and force some customers to leave a state-created insurer of last resort, Citizens Property Insurance, for a private insurer, even if the policy costs more.
‘This is going to make a huge, huge difference,’ the governor says. One of the key goals of the legislation is to keep the claims process from ending up being settled in courtrooms, a problem that DeSantis said drives up legal costs for insurers.
“This bill reins in the incentive to litigate,” DeSantis said before signing the bill in Fort Myers, an area devastated by Hurricane Ian in September. “This is going to make a huge, huge difference.”
Florida has struggled to keep the insurance market healthy since 1992 when Hurricane Andrew flattened Homestead, wiped out some insurance carriers and left many remaining companies fearful to write or renew policies in Florida. Risks for carriers have also been growing as climate change increases the strength of hurricanes and the intensity of rainstorms.
But beyond being prone to hurricanes, DeSantis said Florida needs to reduce legal costs for insurers.
Are flood insurance rates going up in Florida?
Some parts of Florida are seeing rate increases of more than 200%. Dante Weston is an attorney and insurance expert and said the new data shows more than 80% of homeowners in Florida will see increased flood insurance premiums.
Hurricane Ian was one of the most costly hurricanes of all time, causing nearly $113 billion dollars in damage and 152 deaths. This obviously was a major component in the increased insurance rates.
If you have a mortgage, your property insurance premium is most likely included in your mortgage payment. If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.
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