Fla.– Hurricane season has arrived and thousands of people are losing their property insurance. Many others are seeing their prices soar.
Governor Ron DeSantis plans to enact changes to property insurance, but opponents of the move say prices will rise for those who belong to the state-run Citizens Property Insurance. Proponents say the new law will eventually lower interest rates.
Republican representative Jenna Persons said insurance is a big topic that she hears about quite a bit.
“I get multiple phone calls and multiple emails from this area that has problems with home ownership and insurance,” Persons said.
The aim of the new bill is to stop fraudulent roof damage that has been driving up costs for almost everyone.
“I proudly voted for the bill,” noted Persons.
Private companies have lost tens of thousands of customers due to financial problems. This leaves most property owners no choice but to opt for state citizen insurance.
“We want to make sure that Citizens, intended as a last resort, isn’t the first choice for Floridians,” said Lt. Governor Jeanette Nunez.
Nunez and Governor DeSantis say more likely needs to be done in the future. The law, which the governor is expected to sign, allows citizens to raise interest rates.
“Citizens’ insurance is a publicly supported insurance program. So if there are losses, we all pay for them as taxpayers. There is no other pool of funds to meet these claims, ”said Matt Caldwell, Lee County real estate appraiser.
Insurance companies lost $ 1.5 billion last year. Insurance experts say the new anti-fraud law is unlikely to have any impact on charge rates for at least a year and a half.