Insurance coverage is a hot topic these days.
With premiums increasing and private insurers dropping customers, Citizens Property Insurance Corp. has seen an increase of 50% in 2022 to 1.14 million policies!
To help alleviate the insurance burden on citizens, lawmakers passed wide-ranging insurance changes during a special legislative session that included reducing litigation and helping steer policies out of Citizens into the private market.
If you need to talk to an insurance agent about your homeowner’s insurance, please contact us.
Let’s take a look at how these changes are making it easier for people to get insurance coverage.
The Short Version:
- Citizens Property Insurance Corp., a state-backed insurer of last resort, experienced an increase in policies of about 50% by the end of 2022.
- During a special legislative session, lawmakers passed wide-ranging insurance changes to reduce litigation and help steer policies out of Citizens Property Insurance into the private market.
- These changes included preventing policyholders from renewing coverage if they receive offers from private insurers within 20 percent of the cost of their Citizens Property Insurance premiums.
- This is intended to push more customers into the private market and keep costs down for all policyholders across Florida.
Reducing Litigation Against Citizens Insurance
One big change made by lawmakers was reducing litigation from policyholders against Citizens. This means that policyholders who have disputes with their insurance company will now have to go through an arbitration process instead of filing a lawsuit, which can be costly and time-consuming for both parties. This will help ensure that policyholders receive fair treatment and get the coverage they need without having to resort to expensive court proceedings.
Steering Policies Out of Citizens
Lawmakers also made it easier for policyholders to find coverage in the private sector by providing incentives for them to switch out of Citizens into the private market. To encourage more customers into the private market, they approved preventing Citizens policyholders from being able to renew coverage if they receive offers within 20 percent of their current premiums from other providers. This not only helps customers find more affordable rates, but it also helps reduce costs for all taxpayers because when policies move out of Citizens, less money is needed from the state government to support it.
Providing Affordable Options
The new insurance changes are also helping make it easier for people to find more affordable options. For example, companies are now offering discounts for customers who install home safety devices such as smoke detectors or burglar alarms, which can help lower their premiums and make insurance more accessible for everyone.
Additionally, companies are offering discounts for customers who bundle multiple policies together, such as car and homeowners insurance, which can help save money in the long run too!
The new insurance changes passed during this special legislative session will go a long way toward making sure everyone can access quality and affordable coverage regardless of their situation or financial ability. These changes will not only benefit those with existing policies but also those looking to purchase new ones as well.
By providing incentives such as discounts and preventing policyholders from being able to renew coverage if they receive offers within 20 percent of their current premiums from other providers, lawmakers have made sure that everyone gets access to the coverage they need without breaking the bank in order to do so! Having access to quality coverage is important no matter where you live or what your budget looks like – hopefully these changes will continue benefiting citizens across Florida in years to come!