Mar 18, 2024 - News

Fix proposed to reduce home insurance premiums

Illustration of a "For Sale" sign post flooded in water.

Illustration: Maura Losch/Axios

As homeowners face rising insurance costs, two South Florida political leaders have an idea to fix it.

Why it matters: A proposal from U.S. Rep. Jared Moskowitz (D-Coral Springs) and Broward County Commissioner Joe Geller would promise to cut the cost of property insurance by 25%, the South Florida Sun Sentinel reports.

  • The Sentinel reported that the typical Florida home costs about $6,000 to insure — three times the national average, according to the Insurance Information Institute.

What's inside: The plan, outlined in a bill Moskowitz filed last May, aims to lower the amount of reinsurance that insurers have to buy.

  • Currently, insurers need enough coverage to be ready for a once-in-a-130-year storm. The legislation would lower that to a once-in-a-50-year storm.
  • If such a storm occurred, the federal government would cover the excess damage and Florida would pay the feds back with a special assessment on homeowners, the Sentinel reports.
  • Geller said since once-in-a-50-year storms are rare, that kind of assessment wouldn't happen often.

Reality check: The bill hasn't moved in Congress at all and has no Senate counterpart.

Flashback: The Florida Legislature passed reforms in 2022 to make it more expensive to sue insurance companies, a factor in high insurance rates, the Sentinel previously reported.

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