Plus, new rules on pet insurance; Georgia tort reform
A new survey shows Floridians are “connecting the dots” between damaging hurricanes and insurance premiums, the costs of catastrophes doubled in the first quarter of 2025 with hurricane season next on the horizon, new rules on pet insurance are now state law, plus Georgia joins Florida in passing significant tort reform. It’s all in this week’s Property Insurance News.
Reconstruction of an oceanfront home in Wilbur-by-the-Sea damaged by erosion in Hurricane Nicole, November 17, 2022
Survey Says: An annual survey by Florida Atlantic University shows 38% of Floridians were “extremely concerned” about hurricanes becoming stronger and/or more frequent, the highest percentage reporting the top level of concern since the survey started in 2019. The Invading Sea’s Florida Climate Survey also found that most Floridians – 54% – are worried about being able to afford and maintain homeowners insurance due to severe weather. According to a 2023 report by LexisNexis Risk Solutions, the average premiums for Florida homeowners rose nearly 60% between 2015 and 2023, the largest increase in any state.
“Floridians are connecting the dots between climate change and the damaging hurricanes and soaring insurance premiums that they’ve experienced in recent years,” said Colin Polsky, Ph.D., associate vice president and a professor of geosciences in the Charles E. Schmidt College of Science. The March survey is in the wake of the destructive 2024 hurricane season that saw Florida struck by Category 4 Hurricane Helene and Category 5 Hurricane Milton, fueled by record-high ocean temperatures.
Costly Catastrophes: The start of the Atlantic hurricane season is right around the corner on June 1, but the financial cost of natural catastrophes so far in 2025 is already notably elevated. Gallagher Re’s Natural Catastrophe and Climate Report notes that global economic losses reached $110 billion in the first quarter of this year, double the recent 10-year Q1 average of $55 billion. A major driver was the unprecedented wildfire activity in the greater Los Angeles, California metro area during January, which accounted for an estimated $65 billion in economic losses and up to $40 billion in insured losses. This marks the third-costliest Q1 since 2000. The report notes that the months of historically peak natural catastrophe losses are still ahead with a predicted average-to-above-average Atlantic hurricane season.
Courtesy, K9s United via Facebook
New Regs on Pet Insurance: HB 655 has been signed into law by Governor DeSantis, putting new requirements on property insurance companies to make certain disclosures to applicant pet-owners and existing policyholders. The new law clarifies that homeowners insurance policies may include coverage for pet medical care and that the coverage isn’t subject to statutes governing health or life insurance. The law also bars agents from marketing wellness programs as pet insurance, nor may they make a wellness program a prerequisite to purchasing insurance. There’s also tightened rules on coverage exclusions and claims payments, along with a 30-day refund policy. You can read more in the bill analysis. The law takes effect on January 1, 2026.
Credit: Vladislav Chorniy
Georgia Tort Reform: Georgia Governor Brian Kemp has signed two significant tort reform bills that have been years in the making. SB 68 prohibits attorneys from seeking double recoveries, limits recovery of medical expenses to amounts actually paid or necessary based on charges, allows parties to request split trials to streamline the process, and prevents venue shopping to more favorable courts. It also enhances measures against filing frivolous lawsuits. SB 69 addresses third-party litigation funding. It prohibits foreign entities from investing in lawsuits and prohibits litigation financiers from actively participating in making decisions regarding legal proceedings, such as appointment of counsel, choice of witnesses and other litigation strategy. Georgia’s move follows Florida significant litigation and consumer insurance reforms passed in 2022 and 2023.
LMA Newsletter of 4-28-25
