The Florida Senate wants to fix the state’s insurance market. Here’s how

·2 min read

Skyrocketing rates, canceled policies and company after company are either pulling out of Florida or are being forced into liquidation.

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The state’s homeowner insurance market is in crisis.

Now, lawmakers are back in Tallahassee to find a fix, and their plan includes a $2 billion price tag.

The cornerstone of the plan that the House and Senate will be advancing this week is a $2 billion taxpayer-funded pot of money designed to drive down premiums, but nobody knows how much and how soon.

READ: Central Florida economist: Anticipate another recession

Still, lawmakers are poised to spend a lot of money and ramp up oversight.

Almost all of the major insurance carriers in the country have already pulled out of Florida, and those who remain are struggling. Eight carriers have gone into liquidation since the start of last year, with three this year alone.

The Florida Senate returned to Tallahassee for a special session to attempt to stabilize a market in freefall.

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Seminole County Republican Sen. Jason Brodeur said Florida has an obligation to fix this.

“It seems like we have no other choice at this point,” he said. “It is part of the regulatory structure of the property insurance.”

The plan: prohibit insurance from denying coverage if the roof is less than 15 years old, increase state oversight and limit attorney fees.

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Two new funds would be created: a $2 billion fund to lower rates, and another $150 million to hurricane-proof home.

But will it work?

“Do not expect to see a rebate – that’s not going to happen,” said Sen. Linda Stewart, a Democrat from Orange County. “Do not expect to see your rates go down yet.”

READ: Florida’s insurance crisis spreads to condos

With Republicans ad Democrats in consensus, it doesn’t appear the issue is going away.

The Senate Appropriations Committee is discussing the bill. The House will not begin its deliberations until Tuesday.

The package is being fast-tracked and could be approved and on its way to Gov. Ron DeSantis’ desk as early as Thursday.

READ: Florida House passes congressional map drawn by DeSantis despite protest

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