Insurance Reform, Hurricane Aid, Toll Relief OK'd In Special Session

FLORIDA — Florida Gov. Ron DeSantis signed three bills Thursday morning that he said will bring peace of mind and economic relief to Floridians.

During a news conference at the Florida Department of Transportation District 4 regional office in Fort Lauderdale, DeSantis signed Senate Bill 2A, Property Insurance, sponsored by Sen. Jim Boyd, R-Bradenton, intended to reduce litigation that he said is driving up the cost of property insurance and causing an exodus of insurance companies from the state.

He also signed bills providing hurricane relief and toll road relief to Floridians.

On Wednesday during a special session, the Florida House passed legislation aimed at stabilizing the property insurance market.

“I am proud of the work the House did, striking a difficult but careful balance to stabilize Florida’s property insurance market and the growth of (the state-funded) Citizens Insurance," said House Speaker Paul Renner, R-Palm Coast, who joined DeSantis at the news conference. "We have created more competition in the marketplace and have taken significant measures to reduce frivolous lawsuits, all while holding insurers accountable to consumers."

Related:

• Escalating Property Insurance Rates In FL Topic Of Special Session
• Homeowners Insurance Crisis Could Lead To FL Special Session
• FL Property Insurance Reform Focus Of Special Session OKed By DeSantis
• Reducing High Cost Of FL Property Insurance Goal Of Special Session

When it comes to insurance reform in a state with billions in property damage from hurricanes, DeSantis said there are no easy answers.

"Anyone who tells you there's some type of easy fix, just turn the key and suddenly everything's going to be hunky dory, there's a lot of bad policies that have been done over the years that have kind of built, so now we're in a situation in which we're trying to land this so it's going to be stable and people can afford it.

"We've obviously seen a lot of problems for a long time in Florida," the governor said. "But I think what they (the Legislature) did is really far-reaching and will have a positive impact."

He said he challenged the Legislature to look at other states and figure out what they're doing to prevent property insurance companies from pulling out.

"Why do insurance companies leave our state and they have no problem doing business in these other states?" he asked. "Part of it is we have unique challenges, but that's not the main reason. The main reason is that, although Florida represents 8 percent of all property insurance claims nationwide, we represent 80 percent of litigation expenses nationwide. So, you have situations where a homeowner will get a $20,000 settlement from the insurance company and the attorney will get $400,000."

He said one case that went to court in which the homeowner ended up receiving a $50,000 settlement, but the attorney received more a $1 million.

"We're one of the only states that really facilitates those types of lawsuits and shower a lot of attorney's fees," he said. "Almost no other state does that."

He said the most important thing the Legislature did in the property insurance reform bill was to "realign Florida to be more reflective of other states that don't have the significant litigation problems that we have.

"You will see more people willing to write policies in Florida because of what we did," DeSantis said. "Some of the re-insurers that were going to leave Florida entirely, I think you'll see probably a lot of them are going to stay and offer coverage for the companies."

He said those changes will result in lower premiums for homeowners.

“This special session was all about relief,” Renner said. "We're just getting started. Working men and women are getting crushed by inflation that's being driven by Washington, D.C. Today is only the first of many instances when we're going to bring relief to Florida citizens."

Hurricane Aid, Toll Relief

In addition to insurance reform, Renner said the Legislature provided disaster relief to Florida families recovering from Hurricanes Ian and Nicole and designed a toll relief program that will save Florida commuters money.

Senate Bill 6A, Toll Relief, sponsored by Sen. Nick DiCeglie, R-St. Petersburg, will provide $500 million in statewide toll savings for Florida commuters, said Florida Department of Transportation Secretary Jared Perdue.

The program, which will run from Jan. 1 to Dec. 31, will give commuters who have at least 35 paid Sunpass or E-ZPass transactions a month a 50 percent reduction in tolls at all toll facilities that use electronic scanners, he said.

"This toll relief program will make a big impact on the everyday lives of our customers," Perdue said.

Commuters can find out more via the Florida Department of Transportation here.

"It's a perfect example of promises made and promises kept," said Senate President Kathleen Passidomo, R-Naples. "Quite often people will avoid toll roads and take longer routes, missing out on time with their families to save money."

Senate Bill 4A, Disaster Relief, sponsored by Sen. Travis Hutson, R-Palm Coast, provides relief for Floridians impacted by the recent hurricanes.

“The legislation we passed brings meaningful assistance for challenges facing constituents across Florida. The toll rebates for frequent commuters and property tax refunds for those whose homes are uninhabitable following recent hurricanes provide swift, tangible relief that will make a difference in the pocketbooks of Florida families,” said Passidomo, who prioritized $150 million for hurricane housing assistance for communities impacted by Hurricanes Ian and Nicole.

“We know we can’t rebuild a hurricane-destroyed home or lower homeowners insurance rates overnight, but the reforms passed today lay the groundwork for long-term improvements that will give people a place to live while their homes are being repaired or rebuilt as well as structural, pro-consumer changes to our property insurance market that will stabilize the market with the goal of reducing rates over time.”