Business & Economy Miami News

Property insurance rate soars in Florida

Florida homeowners seek answers as property insurance rates soar, despite reforms. Will a state-backed reinsurance program be the solution they've been waiting for?

Buckle up, Floridians! Despite recent property insurance reforms aimed at curbing lawsuits, the rollercoaster of rising property insurance rates in the Sunshine State shows no signs of slowing down. Homeowners are left wondering why reforms haven't translated into relief.

In the quest for answers, experts point fingers at the elusive world of reinsurance, leaving many questioning if a state-backed solution could be the key.

The reinsurance mystery

Behind the scenes of Florida's insurance market, a key player emerges—reinsurance. This behind-the-curtain necessity for insurance companies is causing a ripple effect, pushing premiums skyward. While industry insiders claim last year's reforms have tamed frivolous lawsuits, homeowners like Beth Moran are left grappling with doubled premiums and a sense of powerlessness.

Industry spokesperson Paul Handerhan sheds light on the conundrum, stating that reinsurance is both hard to obtain and expensive. The extra cost, baked into premiums, becomes the bitter pill homeowners must swallow. Handerhan proposes a bold solution: state-funded reinsurance. By temporarily injecting tax dollars to support property insurance companies, the savings would be obligated to trickle down to homeowners in the form of reduced premiums.

A percentage sign glowing above a bar graph showing rising property insurance rates

A plea for guaranteed relief from property insurance woes

Attorney David Murray enters the arena, acknowledging the need to support insurers with reinsurance but with a caveat. For the first time, he insists on a guarantee—lower rates for homeowners. Murray highlights a history of policy adjustments, from reduced mold coverage to deductible changes, leaving consumers feeling the squeeze. The idea of channeling funds to insurers without a guaranteed premium reduction for homeowners raises skepticism.

Murray's stance aligns with the frustration of many Floridians who've witnessed their premiums consistently climb. As the debate unfolds, the question remains: Can a state-backed reinsurance program be the lifeline homeowners desperately need?

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