Will Florida’s Proposes Property Insurance Bill Benefit Consumer’s
Florida has some of the highest property insurance rates in the country with the annual threat from hurricane damage. Consumers and lawmakers alike have been criticizing insurance companies over high rates in the wake of mild hurricane seasons the last few years as well as for what they claim are disreputable industry practices.
Last week, Florida’s Senate passed a property insurance bill that insurance companies were vehemently opposed to. The proposed bill, which still needs to be passed by the House would freeze rates on the state’s subsidized insurance program. It would also increase penalties to companies that violate state insurance laws.
“This is about every consumer getting a fair shake at having a fair and square, straight-up relationship with their carrier,” said Sen. Jeff Atwater, R- North Palm Beach, a sponsor of the bill. “It’s really time that consumers deserve to be front and center in the insurance debate rather than it being about what the insurance industry needs.”
The bill would certainly make insurance more accountable and give the state’s insurance office more teeth. Earlier this year Florida’s insurance commissioner banned Allstate from writing new policies in the state, however the company is still writing policies to this day while it pursues a lengthy appeals process.
Last year the state spent billions of dollars to fund a program that would give insurance companies a discount on costly reinsurance. It was supposed to help lower rates across the state but insurance companies raised premiums nonetheless.
Seeing as the carrot didn’t seem to work out to well perhaps it is time for the state to use the stick.
