Voters prioritize Florida property insurance rates, but solutions remain limited

Hurricane Debby’s storm surge has flooded Fort Myers, Florida, causing significant damage and loss of life. The Category 1 storm has brought attention to the issue of property insurance rates in Florida, which have been skyrocketing in recent years. The state has the highest property insurance rates in the country, with homeowners paying an average of $3,340 per year in 2023, a 37% increase from 2021.

The spike in rates has put a strain on Floridians‘ finances, making property insurance a top concern for voters in the upcoming election. Candidates for the Legislature have been vague in their plans to address the issue, with few proposals that would lead to immediate rate reductions.

Democrats have been trying to capitalize on the issue, with some proposing changes such as making the state’s insurance commissioner an elected position and creating a Property Insurance Commission to evaluate the market. However, these ideas face challenges in the Republican-held Legislature and would not result in immediate rate reductions.

Republicans, on the other hand, have taken actions such as passing laws to reduce lawsuits, providing tax cuts to reduce premiums, and investing in programs to help homeowners harden their homes against hurricanes. While these measures have stabilized the market, rates remain high for homeowners.

At the federal level, U.S. Sen. Rick Scott has proposed a bill to allow homeowners to deduct up to $10,000 in premiums from their taxes, while Democratic candidate Whitney Fox has suggested creating a federal catastrophe fund similar to the National Flood Insurance Program. However, property insurance is regulated at the state level, making it challenging for federal solutions to have a direct impact.

Insurance companies have been actively involved in the political landscape, donating large sums to candidates and political committees. The battle between insurers and the trial attorney lobby is evident in races such as the GOP primary in Senate District 7, where candidates backed by insurers and law firms are competing for support.

Overall, the issue of property insurance rates in Florida remains a pressing concern for residents, with no clear solutions in sight. As the state continues to grapple with the aftermath of Hurricane Debby and the ongoing challenges of high insurance rates, voters will be looking to their elected officials for meaningful action to address this critical issue.