Florida Bills Turn Tables on Insurers

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Two Florida lawmakers are trying to increase scrutiny on private property insurers operating in the state, asking companies to further open their books when asking to increase their premiums.
Why It Matters
Over the past few years, home insurance premiums have skyrocketed in Florida because of a combination of excessive litigation, widespread fraud and the rising frequency and severity of natural disasters. While state lawmakers’ efforts to curb unnecessary litigation and attract fleeing insurers back into the state have been somewhat successful at stabilizing the market, Florida homeowners still pay the second-highest premiums in the nation.
The average annual premium for $300,000 in dwelling coverage in Florida is currently $5,488, according to Bankrate data—a much higher rate than the national average of $2,258. Only Nebraska homeowners paid higher premiums, at an annual average of $5,640 for $300,000 in dwelling coverage.
In some of the most disaster-prone areas of the Sunshine State, the average annual premium was even higher, with West Palm Beach and Fort Lauderdale homeowners paying $8,084 and $7,935, respectively, for $300,000 in dwelling coverage.
Homes along the Gulf of Mexico after they were destroyed when Hurricane Milton passed through the area on October 12, 2024, in Manasota Key, Florida. Homes along the Gulf of Mexico after they were destroyed when Hurricane Milton passed through the area on October 12, 2024, in Manasota Key, Florida. Joe Raedle/Getty Images
What To Know
Crestview Republican state Senator Don Gaetz and Pensacola Republican state Representative Alex Andrade recently introduced two bills—SB 554 and HB 451—targeting Florida’s rising home insurance costs and trying to increase transparency around rate changes.
Under the two bills, insurers operating in Florida would have to pay claims quickly, streamline the adjustment process, and share attorney fees with policyholders during any litigation spurring from the claim process. The proposed legislation includes higher penalties for insurers delaying paying settlements.
The bills would also force insurers to be more transparent around how much they pay their executive officers before they ask for rate increases and disclose any self-dealing with related companies. This would stop companies from artificially depressing their financial state to justify rate increases, the lawmakers said.
What People Are Saying
Don Gaetz and Alex Andrade, in a joint press release: