Florida grapples with a property insurance crisis fueled by rampant roofing scams, causing insurers to shut down, increase rates, and exit the state. Governor Ron DeSantis declared an emergency, urging legislative action before the hurricane season. Scammers exploit homeowners through deceptive roof inspections, leading to fraudulent claims and inflated settlements. Legislative reform attempts face clashes between the insurance industry and trial lawyers.
“Florida is the most volatile property insurance market in the country and it is on the verge of collapse.”
Despite previous measures, industry losses surpassed $1 billion in 2021, resulting in business closures and rate hikes. Citizens Property Insurance Corp. experiences a surge in policies, raising concerns about its ability to pay claims in the event of a major hurricane.
Key Takeaways:
State Senator Jim Boyd proposes a legislative package to curb scams, restrict advertising, and address insurer obligations. The fate of Florida’s property insurance market hinges on effective legislative solutions to prevent further collapses and escalating costs.
See full article here: Florida’s Property Insurance Crisis: A Slow-Motion Collapse and Urgent Legislative Battle