When it comes to home insurance premiums, Florida homeowners have been on a wild ride. Skyrocketing costs have left many feeling helpless and frustrated. But there’s good news on the horizon! Recently crafted home insurance laws are stepping in to bring these runaway insurance premiums under control. Let’s take a look at how these new laws are making a difference.
Home Insurance Laws Tackling the Premium Problem Head-On
The following recent home insurance laws target key areas contributing to the high cost of homeowners insurance and offer practical solutions to help bring the cost of premiums down.
Grants to Help Fortify Homes Against Storms (SB 7028 & HB 1029)
Floridians are no strangers to storms and hurricanes. To help homeowners and condo associations better prepare for these natural events, SB 7028 and HB 1029 were signed by Florida Governor Ron DeSantis on April 24, 2024 (effective July 1). These home insurance laws provide grants for home-fortifying improvements, reducing the risk of damage and, in turn, lowering insurance premiums.
- My Safe Florida Home Program (SB 7028): The bill allocates an additional $200 million to the My Safe Florida Home program, bringing the total investment to over $600 million since 2022. This program offers grants for home improvements to fortify residential properties against future storms, by installing hurricane shutters and reinforcing existing roofs. By reducing the risk of damage from natural disasters, homeowners may be eligible for discounts or other reductions of their home insurance premium.
- Condo Association Grants (HB 1029): HB 1029, which complements SB 7028, provides similar grants for condo associations to help them make necessary home-fortifying improvements. This bill ensures multifamily residential buildings can also benefit from reduced insurance costs by mitigating storm damage risks. This home insurance law is designed to enhance the safety and financial stability of condo residents across Florida.
Reducing Premiums by $500M Statewide (HB 7073)
Another significant step taken recently is HB 7073, a comprehensive tax relief package designed to reduce insurance premiums for policyholders throughout the state. This law, signed by Florida’s governor on May 7, 2024, provides a total of $1.07 billion in tax relief for Floridians, aiming to alleviate the financial burden on homeowners and enhance the affordability of home insurance.
Key provisions and benefits of HB 7073:
- Insurance Premium Tax Relief: The bill includes a waiver of insurance premium taxes for one full year on homeowners’ insurance policies and flood insurance policies. This immediate tax relief directly lowers the cost of premiums by $500 million statewide, providing some savings for policyholders.
- Sales Tax Holidays: HB 7073 also extends several sales tax holidays, including two Disaster Preparedness Sales Tax Holidays in 2024, from June 1 – 14 and Aug. 24 to Sept. 6. Eligible tax-free items include flashlights, reusable ice, radios, tarps, coolers, batteries, smoke detectors, fire extinguishers, carbon monoxide detectors, and generators. These tax holidays help families save money on essential items, indirectly easing the financial strain on household budgets and allowing more resources to be allocated to insurance costs.
Reformed Tort Laws to Curb Frivolous Lawsuits (HB 837)
One major factor contributing to high home insurance premiums has been the surge in frivolous lawsuits. HB 837, signed into law on March 24, 2023, targets this issue by reforming tort laws, specifically addressing the abuse of Assignment of Benefits (AOB) by unscrupulous contractors. In the past, contractors would assume a homeowner's insurance benefits and then sue the insurer, often leading to inflated costs.
Alongside these reforms, the elimination of one-way attorneys' fees has been groundbreaking. Previously, insurers were often forced to cover the legal costs of both parties, even if the lawsuit was baseless. By stopping these fees, this law has significantly reduced the legal expenses insurers face, enabling them to pass these savings onto homeowners through lower premiums. This change fosters a more equitable system benefitting both insurers and policyholders.
Increased Consumer Protection (SB 7052)
Ensuring homeowners are protected and informed is crucial. SB 7052, signed May 31, 2023 (effective July 1), enhances consumer protection by introducing stricter regulations on insurance practices and increasing transparency. This home insurance law requires insurers to provide clear and concise information about policy terms, coverage options, and premium calculations. With these protections in place, homeowners can make more informed decisions and feel more confident in their coverage choices.
Increased Market Competition
Since the introduction of comprehensive insurance reforms in 2022 and 2023, additional insurers have entered the homeowners insurance market in Florida. The increased competition is beginning to reflect in rate filings, with several companies either maintaining zero percent increases or filing for rate decreases.
Take Control of Your Home Insurance Costs Today
Recent Florida legislation is making a real difference in the battle against runaway home insurance premiums. By addressing key issues such as frivolous lawsuits, storm preparation, tax relief, and consumer protection, these home insurance laws are paving the way for a more affordable and reliable insurance market.
Don’t wait to see the benefits of these laws for yourself! Contact your insurance agent today to learn how these changes are impacting your premiums. If you’re not yet insured with Florida Peninsula Insurance Company, you can get your online quote now and discover the best way to protect your home. Your journey to more affordable home insurance starts now.
