FAIR Federal Association for Insurance Reform

FAIR President, Paul Handerhan emphasizes the critical need for proactive insurance preparation in the face of hurricanes, urging homeowners to secure adequate coverage well in advance. He warns against complacency and underscores the importance of flood insurance, especially in vulnerable areas like Florida: "If you look at your driver's license and there's a picture of the state of Florida, you probably need flood insurance."

His advice stresses the significance of understanding policy details and preparing homes with measures like hurricane-impact glass and roof upgrades, emphasizing that waiting until the last minute could lead to significant losses.

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6 things to know about insurance after Hurricane Beryl kicked storm season into high gear Most homeowners don't carry flood insurance. Why it might be a smart move to sign up for the coverage now.

Florida’s Chief Financial Officer, Jimmy Patronis, addressed the impact of recent floods in South Florida, emphasizing the need for residents to initiate insurance claims promptly. He provided contact information for top automobile insurers in the region and resources from the National Flood Insurance Program (NFIP). Patronis encouraged residents with flood insurance policies to contact their agents or visit https://ow.ly/VE2250SkR4k for guidance on filing claims. He also warned against post-storm fraud, advising residents to engage only with licensed professionals and report any suspicious activity to his office.

Read More Here: https://ow.ly/6vNc50SkR4l

| The National Flood Insurance Program Find information on flood insurance, claims, and steps to prepare for flooding in your area.

According to the South Florida Sun-Sentinel, the Florida home insurance industry is showing signs of stabilization, thanks to years of efforts to address high litigation rates and reduced losses. Reinsurers are easing back on rates for the upcoming hurricane season, encouraged by these reforms. However, uncertainties loom, especially with forecasters predicting an intense hurricane season. While insurers have purchased more reinsurance and new companies have entered the market, challenges persist. Premium increases for homeowners have slowed, but costs remain a concern, particularly as the state braces for potential hurricanes.

FAIR President, Paul Handerhan, highlights the risk, noting that additional storms could strain insurers' finances and lead to increased costs for consumers. Despite preparations, anxiety about the upcoming hurricane season prevails among homeowners and insurance professionals alike, underscoring the unpredictable nature of Florida's climate.

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Your insurance costs won’t climb so high this year. All bets are off if we get a lot of hurricanes. [South Florida Sun-Sentinel] If more than two strike Florida, however, "that" s not something you normally budget for, "said Paul Handerhan, president of the Fort Lauderdale- based Federal Association for Insurance Reform. Meanwhile, eight new companies have been approved to sell insurance in Florida, according to the state Off...

Several insurance companies in Florida are either filing or planning to file for property insurance rate reductions in 2024, indicating a positive shift in the state's insurance market. The Florida Office of Insurance Regulation reported that this trend marks a slight downward movement in rates for the first time in years, with 10 companies seeking zero-percent increases and at least eight companies aiming for decreases.

While the specific companies seeking rate cuts were not disclosed, Security First recently announced a 5.9% reduction for its policyholders, signaling optimism about Florida's legal environment and legislative changes benefiting homeowners. Observers like Melissa Devriese of Security First and Jake Holehouse of HH Insurance Group express confidence in the market's improvement, anticipating further rate decreases and a more competitive landscape for Florida homeowners insurance.

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8 insurance companies are reducing rates in 2024 On Monday, the Florida Office of Insurance Regulation said eight companies have filed or will file to reduce their property insurance rates in 2024

In a recent conversation, Florida's CFO, Jimmy Patronis, discussed the My Safe Florida Home Program with ABC Action News Anchor Nadeen Yanes. The program, which received an additional $200 million in funding in late April 2024, aims to help Floridians improve their homes' resilience against storms, thereby reducing insurance premiums.

Key points included:

The program's success, having completed over 104,000 inspections and approved more than 38,000 grants since 2022.

Viewers' concerns about application statuses, the effectiveness of the program for condo owners, and issues with getting insurance discounts after making upgrades.

Patronis highlighted efforts to prioritize low-income and elderly applicants, and acknowledged challenges with the program's website, especially for seniors.

Read the Article Here: https://ow.ly/uQen50RJYcy

My Safe Florida Home Program: https://mysafeflhome.com/

CFO Jimmy Patronis answers viewer questions on My Safe Florida Home Program ABC Action News Anchor Nadeen Yanes continues her conversation with Florida's Chief Financial Officer, Jimmy Patronis. Recently, for an hour, he answered questions submitted by you.

The Florida Office of Insurance Regulation has leveled a $1 million fine on Heritage Insurance, citing several failures to policyholders in the aftermath of Hurricane Ian.

In a consent order, OIR listed nine instances, including failure to pay or deny a claim within 90 days after notice of an initial claim.

"In Heritage's case, a bunch of the adjusters they contracted for right after Hurricane Ian came in," FAIR President, Paul Handerhan said. "But those folks did not have the experience that they said they were going to have."

Heritage Insurance CEO Ernie Garateix said in a statement that the insurer, based in Tampa, cooperated with the investigation and has already made improvements to service.

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Heritage Insurance ‘striving to improve’ after failures to policyholders The Florida Office of Insurance Regulation has leveled a $1 million fine on Heritage Insurance, citing several failures to policyholders in the aftermath of Hurricane Ian.

Senator Rick Scott introduced legislation to provide tax relief for those purchasing flood insurance, aiming to alleviate the burden of rising premiums. The bill offers a non-refundable tax deduction for flood insurance premiums, whether acquired through the NFIP or private carriers. Scott emphasizes the necessity of affordable coverage for Floridians, and has advocated for NFIP reform, addressing issues like unfair rate increases. Additionally, he reintroduced three bills to reform the NFIP, aiming to lower costs, enhance the private market, and better serve Florida families. Senator Scott’s NFIP package has been endorsed by FAIR.

Florida Representative Byron Donalds is leading the companion bill for the current effort in the House of Representatives. Read the bill here: https://ow.ly/V8rQ50RxvkM

Read the full article here:
https://westorlandonews.com/senator-rick-scott-floridians-deserve-flood-insurance-tax-relief/

Cosponsors - S.4143 - 118th Congress (2023-2024): Flood Insurance Relief Act Cosponsors of S.4143 - 118th Congress (2023-2024): Flood Insurance Relief Act

Two prominent South Florida political figures, Steve Geller and Jared Moskowitz, advocate for a congressional bill to significantly reduce homeowner property insurance costs. Geller proposes issuing Treasury notes to cover damages beyond a 1-in-50-year storm, cutting reinsurance costs by half. He estimates Florida homeowners could save $838 million over five years. However, there are concerns about its viability in Congress.

Despite challenges, proponents aim to garner support through town hall meetings. FAIR President, Paul Handerhan supports the initiative, emphasizing its potential benefits for policyholders and the importance of addressing soaring insurance costs. Geller and Moskowitz, along with President Handerhan, are scheduled to talk more about their proposal during a town hall meeting Friday hosted by the South Florida and Treasure Coast Regional Planning Councils. It will take place from 9:30 a.m. to 3 p.m. at the Palm Beach Transportation Planning Agency located at 301 Datura Street in West Palm Beach.

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Reduce insurance costs by 25%? South Florida backers push bill they say would do it [South Florida Sun-Sentinel] Two longtime South Florida political leaders are pushing a congressional bill they say would immediately lower the cost of homeowner property insurance by about 25% in Florida and across the nation. The Insurance Information Institute, a nonprofit organization funded by large insurers, estimated in....

FAIR President, Paul Handerhan, will be participating in the Treasure Coast and South FLorida Joint Council Meeting. The meeting will be featuring a timely conversation on Property Insurance, Transportation, Florida’s Coral Reef, and the 2024 Florida Legislative Session. The Councils will meet on Friday, March 15th, from 9:30 a.m. to 3:00 p.m., at the Palm Beach Transportation Planning Agency.

Private flood insurer Neptune Flood has launched an excess flood insurance product for residential, commercial, and condominium properties. The offering provides coverage beyond the limits set by the National Flood Insurance Program (NFIP), allowing policyholders to maintain their NFIP policy while obtaining additional coverage up to $4 million. The NFIP limits, unchanged for over 25 years, are $250,000 for residential and $500,000 for commercial properties.

Neptune's excess flood policy also offers enhanced protections not provided by the NFIP, such as coverage for temporary living expenses, contents in basements, pool repair, and business interruption insurance for commercial policyholders.

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Neptune Flood expands offerings It is primed to provide cover beyond limits set by the NFIP

U.S. Senator Sheldon Whitehouse warns of a potential financial crisis at Citizens Property Insurance Company, urging Floridians to brace for possible costs in the thousands or tens of thousands per policy for a bailout. With Citizens' small reserves and a large policy base, taxpayers could be on the hook if a major storm hits Tampa or Miami. Senator Whitehouse has initiated an inquiry, emphasizing the broader impact of climate change on the economy.

Paul Handerhan, President of the Federal Association for Insurance Reform, underscores the need for Citizens to accurately charge indicated rates for current policyholders, expressing concern for all policyholders across the state.

Read More here: https://ow.ly/rEem50QfGEL.

U.S. Senator fears Floridians may be forced to bail out Citizens Property Insurance U.S. Senator Sheldon Whitehouse says Floridians may have to shell out thousands to bail out the state-backed company.

The Senate Budget Committee, led by U.S. Sen. Sheldon Whitehouse, is investigating Florida's Citizens Property Insurance 's readiness for climate-related disasters. Concerns include the insurer's market share growth, potential assessments on policyholders, and the risk of federal bailouts.

FAIR President, Paul Handerhan, stresses that last-resort insurers like Citizens shouldn't compete with private markets at subsidized rates. Former senator Jeff Brandes suggests lifting rate caps for new customers to enhance financial health and competitiveness. The probe raises broader questions about insurers' resilience amid escalating climate risks.

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U.S. Senate Budget Committee announces investigation into Citizens Insurance The chairman of the Senate Budget Committee has opened an investigation into Florida’s Citizens Property Insurance Corp.’s and its ability to pay claims for “climate-related& #8221…

Florida property insurance experts are optimistic about the state's progress as four insurance companies have received approval to take on up to 125,000 policies from Citizens Property Insurance. This move was a priority for state leaders during a special legislative session due to concerns about the financial risks of a major hurricane. The reduction of policies in Citizens is seen as a positive step in reducing financial risk for the state. Private insurance companies are actively taking on policyholders, and the depopulation of Citizens is progressing in multiple phases.

The key factor in policyholders transitioning to the private market is the cost offered by private companies. If the offer is within 20% of what policyholders currently pay Citizens, they must accept it. The current rate of depopulation is seen as a positive sign of Florida's path to stability, especially given the relatively mild hurricane season. This trend also reduces the likelihood of Floridians having to pay a "hurricane tax" to cover Citizens' insurance claims after a major hurricane or storm.

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Approval of thousands of property insurance policies taken from Citizens means ‘good news’ for Florida, experts say Florida property insurance experts say the approval of four insurance companies to take as many as 125,000 policies from Citizens Property Insurance is another sign the state is headed in the right direction.

FEMA designates 483 Community Disaster Resilience Zones to aid vulnerable communities in preparing for and recovering from natural disasters. These zones receive increased financial support and assistance for resilience projects. CDRZ selection is based on data, and it encourages federal agencies and external stakeholders to collaborate in disaster mitigation. Multiple organizations support this initiative as a proactive step to enhance community resilience. FEMA is hosting webinars to explain the CDRZ program.
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Community Disaster Resilience Zones Build Resilience Nationwide, Create New Opportunities for Bipartisan Infrastructure Law Benefits Last month, FEMA announced the designation of 483 community census tracts as Community Disaster Resilience Zones (CDRZ), as directed by Congress in the Community Disaster Resilience Zones Act of 2022. Natural disasters and the most severe effects of climate change disproportionately impact communiti...

Florida homeowners are unlikely to see a decrease in insurance premiums due to several factors outlined by Karen Clark & Company. Over the past few years, increased hurricane activity, severe weather events, inflation, and excess litigation have driven up insured losses. These trends are attributed to climate change and shifting weather patterns, contributing to higher costs for Florida insurers. Construction costs have also surged, impacting premiums. Excessive litigation in Florida has inflated single-family home insurance claims, although legislative reforms aim to address this issue.

Reinsurers, whose pricing influences premiums, have raised rates due to increased risk and inflation. While legislation can address some issues, uncontrollable factors like weather and construction costs will continue to impact insurance premiums in Florida. Additionally, addressing climate change through building codes, property retrofits, and land use planning is crucial for mitigating risks in the state.

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In the News • Karen Clark & Company Karen Clark, founder of risk modelling firm KCC, takes center stage on "Money Talks from The Economist," offering expert insight into insurance challenges posed by climate change.

Senator Rick Scott has introduced the Flood Insurance Affordability Act, aimed at improving access to flood insurance for Floridians. The bill would require FEMA to allow monthly premium payments instead of yearly lump sums, making coverage more affordable.
Representative Anna Paulina Luna is leading a similar bill in the House of Representatives. Senator Scott has been a long-time advocate for reforming the National Flood Insurance Program (NFIP) and has introduced several bills to address issues like transparency, affordability, and private market options in the NFIP.
The recent increase in flood insurance rates following FEMA's Risk Rating 2.0 has prompted his efforts to ensure affordable coverage for working families in Florida. FAIR has endorsed Senator Scott's NFIP Package.

Read More Here:https://ow.ly/4POq50PNYfL.

Sen. Rick Scott Introduces Legislation to Improve Affordability of Flood Insurance Sen. Rick Scott Introduces Legislation to Improve Affordability of Flood Insurance September 19, 2023 WASHINGTON, D.C.—Today, Senator Rick Scott introduced the Flood Insurance Affordability Act, which would require the Federal Emergency Management Agency (FEMA) to offer Floridians an option to pay...

FEMA encourages residents to heed local officials' advice, as Georgia, North Carolina, and South Carolina prepare for hurricane conditions. FEMA, the American Red Cross, and other organizations have positioned resources for disaster response, including food, water, and shelters. The Florida National Guard is active, and federal agencies like the U.S. Army Corps of Engineers are ready to support power restoration and infrastructure needs. The aftermath poses dangers too, with flooding, debris, and power outages. Various non-profit partners are also assisting. Citizens are advised to stay informed, follow safety precautions, and evacuate if necessary.

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Biden-Harris Administration Urges Public to Stay on Alert, Stands Ready to Respond to Hurricane Idalia Under President Biden’s leadership, the Biden-Harris Administration has mobilized 1,500 federal personnel, more than 540 Urban Search and Rescue personnel and three Disaster Survivor Assistance Strike Teams to support states in the path of the Hurricane Idalia. FEMA and the federal government cont...

Property Insurance Town Hall, featuring Chief Financial Officer Alex Sink and Citizens Property Insurance Corporation CEO Tim Cerio, occurred yesterday.

Feel free to tune in to the discussion here: https://www.facebook.com/FLSenateDemocraticCaucus to learn about what the state has to offer regarding property insurance oversight and resources - from the CFO's office to OIR to Citizens.

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