TALLAHASSEE, Fla. — In a 30-9 bipartisan vote Tuesday, the Florida Senate passed a massive bill aimed at tackling the growing property insurance crisis in the state, including an amendment for enhanced condo safety reform, sending it to the House for consideration.
The bill introduced by State Sen. Jim Boyd (R-Bradenton) would make major changes to property insurance laws in the state, among the most notable providing $2 billion to a reinsurance fund, essentially insurance for insurers to cover losses during hurricane season. Companies that buy-in would have to reduce rates by the end of next month.
The bill would also prevent insurers from automatically denying coverage based on the age of a roof, set aside $150 million in grant funding for some homeowners to retrofit for protection against hurricanes and cap the fees attorneys get in lawsuits against insurance companies.
GOP Leaders in the Senate say the bill will help cut down on frivolous lawsuits and bad actors in the roofing industry, two of the driving factors they believe are causing premiums to spike.
Lawmakers are issuing some caution that it could take up to 18 months before people actually see a reduction in their premiums.
Democrats offered amendments to freeze and cap rate increases, but they were struck down by Republicans who said it could cause more insurance companies to go insolvent, resulting in more people losing coverage.
Also Tuesday, leaders in the House and Senate announced legislation to address the tragic 2021 condominium collapse in Surfside will also be a priority during the session.
“We will never forget the pain, confusion, and sorrow the community and state felt when the Surfside condominium building collapsed and took 98 lives with it," said House Speaker Chris Sprowls, R-Palm Harbor. "The Florida Legislature has grappled with reaching a consensus on what meaningful reform looks like, but today we have arrived at an agreement that will help to ensure this kind of tragedy never happens again."
The legislation, HB 5-D, which was introduced right before the House gaveled in Tuesday morning, would mandate more frequent condominium inspections, make condo records available to potential buyers and ensure reserve funding is secured by associations to make sure repairs and maintenance can be covered and not put off.
Earlier this month, a nearly $1 billion tentative settlement was reached in a class-action lawsuit brought by families of victims and survivors The 12-story Champlain Towers South condominium collapsed in the early morning hours of June 24, 2021, and the main lawsuit contends the building was in badly need of repairs.
“I am grateful to all of the legislators and other stakeholders who worked diligently on this issue over the last several months," said Senate President Wilton Simpson, R-Trilby. "While we can never replace the 98 lives we lost in the collapse of the Champlain Tower South, we can honor their memory with strong reforms that will better protect condo owners and residents moving forward.”
The House will likely vote Wednesday on both.