HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » DeSantis' New Insurance L...

Thu Aug 31, 2023, 10:07 PM

DeSantis' New Insurance Law Could Make It Harder to Rebuild After Hurricane Idalia

(Mother Jones) Hurricane Idalia struck Florida 190 miles north of Tampa on Wednesday as a Category 3 storm, a classification that causes “devastating” damage, according to the National Oceanic and Atmospheric Administration. With 125-mile-per-hour winds upon landfall, it fell just short of the Category 4 metric.

This region of Florida hasn’t seen such strong wind gusts and storm surges in more than 125 years. Many roads are flooded, with water levels up to at least 8 feet.

“We have multiple trees down, debris in the roads, do not come,” posted the fire and rescue department of Cedar Key, an island connected to the mainland by bridges. There, water levels are at least 6.5 feet high. “We have propane tanks blowing up all over the island.”


..... recent changes to Florida’s tort laws orchestrated by GOP lawmakers and Republican Gov. Ron DeSantis will make it much harder for home insurance policyholders to sue their insurers for failing to adequately pay out claims for home damage. Idalia is the first hurricane to hit Florida since the laws were re-written in December 2022, following Hurricane Ian:

The sweeping revisions makes it more difficult for homeowners to sue their property insurance companies for acting in “bad faith” and removes the right of homeowners to recover attorney’s fees, even in lawsuits they ultimately win. Additionally, the adjustments to Florida’s insurance laws allow insurance companies to create new policies with mandatory binding arbitration agreements in exchange for a premium reduction, which will also thwart many homeowners’ option to take insurers to court…Moreover, the legislation shortened the window in which policy holders can file claims with their insurers, invested $1 billion of taxpayer funds into a state-run reinsurance fund to help insurance companies mitigate their losses in the event of catastrophic events, and narrowed eligibility for Citizens, Florida’s state-run nonprofit insurance company that provides insurance to people who cannot find affordable coverage on the regular market.

Home insurance premiums in the state are already four times the national average and still rising. ..................(more)


2 replies, 657 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 2 replies Author Time Post
Reply DeSantis' New Insurance Law Could Make It Harder to Rebuild After Hurricane Idalia (Original post)
marmar Aug 31 OP
Native Aug 31 #1
Xolodno Sep 1 #2

Response to marmar (Original post)

Thu Aug 31, 2023, 10:37 PM

1. But at least pudding fingers got hefty campaign donations from them.

That's all that really matters.

Reply to this post

Back to top Alert abuse Link here Permalink

Response to marmar (Original post)

Fri Sep 1, 2023, 01:39 AM

2. Citizens has 90% Market Share on Windstorm damage.

And despite the recent Tort Reform, a lot of companies are still not coming back. They took underwriting losses which depletes reserves, so they have to rebuild those reserves to a decent point before they can re-enter.

Florida was reactive rather than proactive. Add the very lax building codes out there (remember that condo collapse?), they are going to be very cautious and selective about returning.

Something similar is happening in California (informed in a meeting today that three more carriers will stop writing new business for homes and a rumor is some smaller carriers may non-renew). The California Assembly is supposedly trying to amend Prop 103 (made sense in the 80's...but not today) to fix the problem. But at the same time, the new Fire Hazard Map Zones (not yet approved) no doubt spooked a lot of companies. We are probably going to get another El Nino year so I don't expect too many wildfires this season...the problem comes when El Nino stops and everything dries out. Were going to need a lot more goats.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread