Florida Home Insurance Crisis: Rising Costs and Insolvency Risk Due to Climate.
This Senate resolution highlights the severe crisis in Florida's home insurance market driven by climate risks, leading to high costs for citizens. Homeowners now pay an average of $14,000 annually, with rates increasing 34% since late 2022. The resolution warns that the state-backed insurer of last resort might fail to cover losses, potentially resulting in surcharges levied on all policyholders in the state.
Key points
High insurance costs: Average annual home insurance premiums are $14,000 and continue to rise significantly.
Insolvency risk: Smaller insurers are 30 times more likely to become insolvent, threatening payouts for homeowners.
Potential fees for all: If the state-backed insurer suffers losses, all Florida policyholders could face additional surcharges.
Call for scrutiny: The Senate urges federal agencies to examine the credibility of insurer financial ratings and the risk of a federal bailout for state-backed insurers.
Introduced
Citizen Poll