DeSantis and Republicans Failed Floridians on Much Needed Property Insurance Reform

As a Republican who served for 22 years as a Manatee County Commissioner, I have witnessed many state leaders in action. Never have I witnessed the lack of leadership I see at the state today. Today’s so-called leaders are not about serving the people of this great state, so much as, what can I do to destroy the other party. In its wake, we ignore the actual work required by a governor and the legislature to maintain some basic requirements such as a healthy and viable property insurance marketplace.

As a business person and a homeowner, just like you, I am personally impacted by the lack of any meaningful property insurance reform in our state. It appears that every time the state attempts to reform the insurance industry, it results in higher prices and more insurance companies leaving our state. Increasingly, insurance impacts are a common topic of discussion in everyday conversations. It usually starts out with, can you believe my insurance company sent me a letter of non-renewal because my roof is 15 years old? Sometimes it’s, did your insurance premium just double? A friend of mine had a roof, 15 years and 3 months old, in great shape with lifetime shingles. He pleaded with the insurance company to take a look and they refused, just stating that if it’s over 15 years old, they don’t insure it. It cost him more than $20,000 to get a new roof, and his rates still increased.

This year, just like years past, our state leaders failed to enact any meaningful legislation to reform the property insurance industry. So, the governor called for a special session, reserved to tackle a problem to which, one would hope, the leaders already had a solution in mind. Instead, neither the governor nor the legislature came up with any meaningful reform and instead just kicked the can down the road with little more than a committee that will report back later. Pretty useless outcome since we already have a committee on insurance and an insurance commissioner. Here is what the insurance commissioner’s website states:

"David Altmaier was appointed as the Florida Insurance Commissioner in April 2016 by the Financial Services Commission. He leads the Office of Insurance Regulation (OIR) and has oversight of one of the largest insurance markets in the world. Under Altmaier’s leadership, OIR has worked to cultivate a market in Florida in which insurance products are reliable, available, and affordable.“

Talk about delusional rhetoric. I would not consider what we have in Florida to be reliable and available insurance products when insurance companies are leaving in droves, canceling policies, and so close to the verge of collapse that the state had to step in and back the reinsurance market. Let’s talk about inflation. Insurance increases are some of the highest forms of price inflation that I have seen. Rates have increased between 10 and 50 percent for my policies. I am sure many others feel the same pain, and renters also pay this increase as their rent goes up to compensate for the impacts, compounded by increases in inflationary property taxes.

As to the Florida Senate’s insurance committee, I had high hopes, with our local State Senator Jim Boyd as chair. Jim has been an insurance broker for decades, and I have great respect for him personally. However, that much-needed reform simply has not come about, and Florida’s property insurance industry is in a death spiral as a result.

As Floridians, and anyone doing business in our state, we should all be concerned enough to raise the red flag warning. As a potential hurricane enters the Gulf of Mexico this coming week with its target on Florida, I can only wonder if the insurance industry in our state can withstand a major hit. Florida has the resources to bail out the companies on the back of taxpayers, but would it not have been more responsible to focus the state’s attention on this very real insurance crisis ahead of such a calamity? Instead, we create political fights for popularity, from never-before-heard terms like woketo calling every Democrat some type of communist or socialist that needs to be stopped.

What is most frustrating is that we have a really great place to call home. No place is perfect, but most of us go out into society without worrying if the person is a Democrat, Republican, or any other ideology. We all, for the most part, get along as we go to restaurants, to sports games, to churches, and when enjoying our great outdoors. Why do those in power want to destroy a great peaceful way of life and pit Americans against one another? Why don’t those in power just do the job we elected them to do? Insurance is a big priority, but it has been ignored while endless energy is spent on divisive rhetoric.

For example, for many years those in power knew of a fraudulent roof scam that cost the insurance industry so much money that it bankrupted some carriers and is causing others to simply leave our state. The scam was to get the insurance company to replace your roof for free if you had any damage they could associate with a storm and then litigate a settlement with the carrier if they didn't pay the claim.

This unexpected cost to the insurance company was not warranted and not one that was forecasted. This scam still goes on today, from what I understand. I first became aware of it when I was getting a new roof quote. After I made my decision, another company said it was too bad I was going to pay for a roof they could have gotten me for free with the insurance company paying for it. I had no idea how bad this scam was impacting the market until my own insurance company later filed for bankruptcy.

For many of us, we feel lucky just to get insurance. Many insurance carriers will not even write new policies, or write ones in coastal areas, or on older homes, etc, etc! I miss the days when you could just call an agent and get property insurance. Today, it requires that you pay for an inspection and then hope at least one company will insure your property and that you can afford the premium.

The insurance collapse also has side effects. Your mortgage company requires you to have property insurance. If you lose your policy and cannot secure another one, you can wind up with an extremely expensive mortgage company-imposed insurance cost, or maybe you can’t close on that house until the roof is replaced, possibly the windows as well, and don’t forget about trimming those trees.

The warning signs are real. We are in trouble. Citizens Insurance, the state-run insurance company, has doubled its policies this past year to over one million and climbing fast. Citizens also stepped in to back existing insurance companies’ reinsurance. This is where insurance companies go to insure themselves against potentially catastrophic losses. They could not even get insurance for themselves, so the state became their insurance company. I guess all roads lead to Rome.

The insurance problems don’t end with property insurance. The boating industry is facing its share of problems, as well. Insurance was so much easier years ago, less aggravating, lower cost, and without imposing all of the stress we see today. Insurance agents are the ones in the middle, trying to find alternatives while having to meet new underwriting conditions, faced with few options for their clients. I praise them when I can because it cannot be an easy job in this crisis we all are facing.

Leadership is not when leaders call themselves great. It is when they do great things for all of the people they serve. I only wish it was true that our leaders in Florida provided insurance products that are reliable, available, and affordable instead of just stating it!