ST. PETERSBURG, Fla. — With hurricane season right around the corner, some lawmakers are concerned thousands of Floridians could run into trouble when it comes to protecting their property insurance.
Rates are getting too high and more companies are dropping out of Florida.
"This neighborhood and my house has slowly increased in value over the years," Pete Olivares, a homeowner in St. Petersburg's Old South East Neighborhood, said. "I've seen increases – $200, you know, $150 – which were reasonable, but never anything like this."
Like many homeowners in the state, he's had property insurance for years. But in the last two, the increase he's seen has more than doubled.
"Last year, my insurance—without changing any coverage and without ever having—had a claim jumped $1,500. This year, when the renewal came up, it was going to go up another $1,500. That's when I said, 'I've got [to] shop this around,'" Olivares said.
Olivares is just one of the thousands in the state dealing with the same issue. Many are being priced out of their own neighborhoods. So we asked Florida's Insurance Consumer Advocate, Tasha Carter, why?
She gave us a sharper insight into the four key reasons:
- Insurance claims are still outstanding from hurricanes Irma and Michael.
- Rates for reinsurance, which is what's used to help insurers pay for big claims, increased 54%.
- Pending litigation against insurance companies increased 266% over the last eight years.
- Insurance fraud continues to plague the state.
All four things are pushing the price consumers pay up. That's why lawmakers are pushing for action now.
"We are in the perfect storm of a property insurance collapse," Florida Sen. Jeff Brandes (R-St. Petersburg) said. "The legislature or the Governor are going to have to call a special session and if they're not willing to do that that I'm going to."
Brandes, who is based in St. Pete, says the state is in crisis.
Gov. Ron DeSantis said lowering property insurance rates could be tackled in an upcoming special session to redraw the state's voting districts, but if not, he wants something passed by the end of the year.
"It won't go all the way to next year," DeSantis said. "I think, at the latest, it will be when Speaker Lenner takes over, right after the election that they will punch it through. So that's the latest it will go. I would like to do it before then because I think it could stabilize things in the market."
Meanwhile, Brandes says that won't fly with hurricane season approaching quickly.
"I think it's too long," Brandes said. "I think you've got to act now. I think you have to act before July one."
Homeowners like Olivares just hope relief in the market will come fast.
"We need to stop talking about it and do something about it because people really need some relief," Olivares said.
There are some tips for homeowners looking to lower their insurance rates. Experts recommend:
- Shop around to see if you can find coverage that provides adequate coverage for your property at a reasonable rate.
- Take advantage of all of the discounts that are offered by your insurance company to help reduce your insurance premium.
- Bundle your homeowners and auto insurance if you can.
- Consider strengthening your home by installing hurricane mitigation features such as shutters over your windows and doors, brace your garage, and add additional roof deck attachments to strengthen your roof.