Progress and warnings
At the close of the Florida legislative session this month, I sat down with two prominent legislators to talk about the new laws expected to impact Florida’s property insurance and real estate markets, reinsurance prices, and condominium affordability. They also shared their joint belief in bipartisanship for finding workable policy solutions. We recorded our conversation as the newest episode of the Florida Insurance Roundup podcast.
My conversation was with Representative Tom Fabricio (R-Miami Lakes), who sits on the House Insurance & Banking Subcommittee and Chairs the House Ethics, Elections & Open Government Subcommittee. He is a former insurance defense attorney whose now practices real estate law, including real estate transactions. We were joined by Senator Nick DiCeglie (R-St. Petersburg), who is Vice Chair of the Senate Banking and Insurance Committee and a former Chair of the House Insurance & Banking Subcommittee. He is President and CEO of Hope Villages, a Tampa Bay area nonprofit.
Florida State Representative Tom Fabricio (R-Miami Lakes)
They talked about why they ran for the legislature and their vision for Florida’s homeowners insurance marketplace. Topics included the admitted insurance market, surplus lines companies, and reinsurance companies and whether the bills passed this session will compliment past market reforms and how fast we can expect homeowners rates to stabilize. Among the passed bills and issues we discussed:
- HB 1503, which authorizes surplus lines insurance companies to take out policies (“takeouts”) from the state-backed Citizens Property Insurance Corporation’s non-homesteaded residential properties, such as second homes, among other risks.
- HB 1029, which applies the popular My Safe Florida Home homeowners program to condominium complexes and individual condo unit owners in an initial pilot program. The program offers a $2 to $1 match to incentivize homeowners to harden their homes from future hurricanes.
- Reinsurance, with rate increases of 20% to 40% over each of the past three years onto insurance companies that in turn, pass the cost along in premiums to homeowners.
- HB 1021, which overhauls current statutes to impose criminal penalties for violations and fraud on condominium boards, other community and homeowner associations, and their elections.
Florida State Senator Nick DiCeglie (R-St. Petersburg)
Both legislators agreed that the rising property insurance prices, coupled with big increases in condominium association fees have squeezed a growing number of condo unit owners and should be a cause for concern. Those that can’t afford their condos anymore are trying to sell, but many have had to lower their selling price because of those growing costs (see this Forbes article). Senator DiCeglie called it the “perfect storm.” It was a great conversation and I thank both of these lawmakers for sharing their insights. You can read more about our conversation and listen to the “2024 Legislative Roundup” episode here.
LMA Newsletter of 3-25-24
