UPDATE: The Governor announced plans for a special session to tackle property taxes and property insurance to happen in December 2022.
News Coverage of the Property Insurance Crisis
WFSU: Florida leaders consider action as 17 property insurers face a downgrade in ratings
Angry at a ratings agency that raised the possibility of downgrading 17 Florida property insurers, state leaders could be poised to look for an alternative.
The Joint Legislative Budget Commission is expected to consider a proposal to spend $1.5 million to hire a consultant that would look at options for property insurers to get adequate financial ratings.
Such ratings are important, in part, because mortgage-industry giants Fannie Mae and Freddie Mac require homes to be insured by financially sound companies. If insurers lose satisfactory ratings, homeowners could be forced to find other coverage.
CBS Miami: South Florida communities impacted by insurance crisis
“I were not in the peak of hurricane season so to know your about to be dumped is nerve-racking,” said homeowner Ernesto Cortez, referring to his insurance carrier not only dropping him but going out of business.
The move comes after multiple insurance companies in the state were downgraded, his carrier Weston, is among them and now they have become insolvent.
“After the downgrade of the insurance companies, they didn’t do the 17 they did 4 companies but out of the four my insurance is one of them, so now I have to get insurance again twice in less than four months” added Cortez.
Insurance Journal: Debate Deepens After Florida OIR Seeks to Raise Citizens’ Coverage Limit on Homes
At a Citizens committee meeting last week, Florida regulator Susanne Murphy revealed that the Office of Insurance Regulation is now considering waiving Citizens’ $700,000 coverage limit for upscale homes, at least in some counties. Agents have said that the change is badly needed: Their options are more limited than ever in parts of the state where home values have soared and primary market carriers have pulled back or have restricted coverage in the middle of hurricane season.