Florida Senate Passes Property Insurance Overhaul

The Florida Senate has significantly overhauled the state’s property insurance market. The new law, which has been in the works for several years, is intended to provide relief to Florida homeowners struggling with rising insurance costs. 

The new law contains several changes designed to help make insurance more affordable and accessible in the Sunshine State. At Noble Public Adjusting Group, we understand that filing an insurance claim can be stressful and confusing. That's why we take the time to explain the claim process in an easy-to-understand way. 

We also stay up-to-date on the latest insurance laws and regulations to get you the absolute best results possible.

It will take a closer look at the details of the new law and how it could affect Florida homeowners.

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What is the Florida Senate?

The Florida Senate is the upper chamber of the Florida State Legislature, which is the legislative branch of the government of the U.S. state of Florida. It is composed of 40 senators, each representing a single district within the state. The Florida Senate, along with the Florida House of Representatives, is responsible for considering and passing legislation that affects the state of Florida.

The Florida Senate has the authority to approve or reject laws proposed by the House of Representatives and propose and pass its legislation. Senators serve four-year terms and are elected by the citizens of their respective districts. The Florida Senate meets at the Florida State Capitol in Tallahassee, the state capital.

The Florida Senate is led by the President of the Senate, who is elected by the other senators and serves as the chief officer of the chamber. The President of the Senate is responsible for maintaining order and decorum during Senate proceedings and appointing members to committees and subcommittees.

What Is Hurricane Reinsurance?

As we all know, hurricanes can devastate coastal communities, resulting in billions of dollars in losses from damages to property and other assets. Unfortunately, insurance companies often struggle to cover these damages due to the increased costs associated with providing coverage for hurricanes and other natural disasters.

Recently, a proposed bill would provide $1 billion in taxpayer funds for a program to provide insurance companies with hurricane reinsurance. This type of coverage is bought to help companies pay out claims in the event of a major hurricane. The bill would also offer “reasonable” rates in a market where companies have complained about rising costs.

So, what exactly is hurricane reinsurance? 

It is an additional layer of coverage that insurance companies can buy to help ensure they can pay out claims in the event of a significant storm. This additional layer of coverage helps protect insurance companies in a catastrophic event, such as a hurricane, that could result in large payouts.

The bill is designed to provide insurance companies with additional coverage at reasonable rates and help ensure they can pay out claims in the event of a major hurricane. This additional coverage is critical for insurance companies to protect themselves against potential losses and help ensure they can pay out claims in the event of a major hurricane.

Why Do We Need to Make Changes to Property Insurance?

Property insurance is an essential part of protecting your investments. It provides coverage for your home or business in the event of loss or damage due to natural disasters, theft, and other unforeseen circumstances. However, as the world changes, the insurance industry needs to change. 

Here's why we need to make changes to property insurance.

1. Increased Risk of Natural Disasters

Natural disasters such as floods, earthquakes, and hurricanes have become more frequent and powerful in recent years. Furthermore, the natural disaster risk is only increasing with climate change. 

As such, property insurance policies must be updated to cover the increased risk of natural disasters. It may include expanding coverage for flooding, adding earthquake coverage, or increasing coverage limits for specific locations.

2. Changing Technology

Technology is creating new risks that need to be addressed in property insurance policies. As electronic systems become more sophisticated, they come with an ever-increasing risk of hacks and data breaches. 

Furthermore, new technologies such as drones and automated vehicles must be considered when updating property insurance policies.

3. Changing Laws

Laws governing property insurance are constantly changing. As such, it is essential to keep up with the latest developments to ensure that policies comply with the latest regulations. 

It may include changes to coverage limits, definitions of what is covered, and other policy aspects.

4. Increased Costs

The cost of property insurance is also increasing due to inflation, the cost of repair and replacement of items, and the increased risk of natural disasters and other risks. 

As such, it is essential to review the existing policy to ensure that it provides the right level of coverage at the right price.

5. Increased Competition

The property insurance industry is becoming more competitive, with more companies offering policies and more competitive pricing. As such, it is essential to review existing policies to ensure they are competitively priced and provide the right level of coverage.

We understand that an insurance claim is a complex process, and we will be with you from start to finish. We will review your policy and coverage, analyze the damage or loss, prepare an estimate and submit the claim to the insurance company. We’ll also negotiate with the insurance company to get you the best possible settlement. 

Why Florida Senate Passes Property Insurance Overhaul?

The Florida Senate recently passed a significant property insurance overhaul, a major victory for homeowners in the state. The bill passed on a 27-13 vote and includes several important provisions to help Florida homeowners save money on their insurance premiums. 

Here’s a look at why the Florida Senate passed this vital property insurance overhaul and what it means for homeowners.

1. Lower Windstorm Insurance Costs

One of the main reasons that the Florida Senate passed the property insurance overhaul is to help lower the cost of windstorm insurance for homeowners. The new bill requires insurance companies to use a more accurate windstorm model to determine the risk of a specific property, which should help lower premiums. 

The bill also requires insurance companies to provide coverage for properties within 500 feet of the coastline and to provide discounts for properties with hurricane shutters or roof-to-wall attachments.

2. Increased Insurance Coverage

The new bill also increases the coverage homeowners can receive for their property. The bill requires insurance companies to provide coverage for up to $500,000 in losses for a single-family home and up to $750,000 for a multi-family dwelling. 

The bill also requires insurance companies to provide coverage for particular personal property, such as furniture and electronics, up to $50,000.

3. Increased Access to Insurance

The bill also increases access to insurance, making it easier for homeowners to find coverage that fits their needs. The bill requires insurance companies to accept applications from all qualified applicants, regardless of their credit score or other factors. 

Additionally, the bill requires insurance companies to provide coverage to any property at least three years old and any property located in a hurricane-prone area, regardless of age.

4. Reduced Deductibles

The property insurance overhaul also reduces the amount homeowners must pay in deductibles. The bill reduces the deductible for windstorm coverage from 5% to 2% of the property's insured value. Additionally, the bill reduces the deductible for sinkhole coverage from 10% to 5%.

In Florida, annual premiums have increased to more than $4,200 on average, three times the average nationwide premium. According to a research organization supported by the insurance industry, over 12% of homeowners in the state do not have property insurance, which is significantly higher than the average of 5% across the country.

5. Increased Transparency

The new bill also increases the transparency of the insurance industry, making it easier for homeowners to understand the terms of their insurance policies. The bill requires insurance companies to provide homeowners with an annual statement outlining the cost of their premiums and their coverage. 

Additionally, the bill requires insurance companies to provide an explanation of any changes to the policy and to provide an annual statement of the coverage limits.

Conclusion

The overhaul of Florida’s property insurance system is a significant victory for consumers and businesses. The new legislation will make insurance more affordable, accessible, and understandable while providing important consumer protections. It’s an important step forward in providing Floridians with the necessary insurance coverage.

With decades of combined experience and a deep understanding of the insurance claims process, Noble Public Adjusting Group is the best choice for policyholders who need to file an insurance claim. We are a team of dedicated professionals who will work hard to ensure you get the best results. 

Don’t go it alone when filing an insurance claim. Let the experienced team of public adjusters at Noble Public Adjusting Group be your advocates and help you get the reimbursement you deserve. Contact us today, and let us get to work.