A recent study suggests that mitigating risks is the key to reducing property insurance premiums

ORLANDO, Fla. —

Almost a year ago, Florida legislators convened a special session with the aim of addressing the state’s property insurance crisis. On Tuesday, they gathered again to evaluate the outcomes.

Nonetheless, a newly published study from a prominent risk assessment firm has determined that consumers may not witness a decrease in premiums in the near future.

Mark Friedlander of the Insurance Information Institute stated, “Even with the substantial reforms enacted by the Florida legislature, when certain macro-level factors are in play, the avenue to lower rates remains elusive.”

These costly factors were identified as follows: the escalating severity of hurricanes, increasing losses from non-hurricane-related storms, inflation and the rising costs of construction, the lingering repercussions of excessive litigation, and the surging expenses of reinsurance, which are transferred to consumers through insurance companies.

The researchers suggested that, without recent legislative measures, the premiums for many Florida homeowners would be even higher.

Republican state Rep. Randy Fine stressed that economic considerations must be addressed at the federal level. Democratic state Rep. Anna Eskamani agreed on the need for further action but emphasized policy reform related to climate change.

The report contemplated a potential avenue to eventually reduce costs for consumers by first addressing the climate risks faced by Florida’s expanding population and coastal communities. The analysis proposed stricter building codes, retrofitting existing properties, and enhancing land-use planning.

Eskamani highlighted, “When you examine the buildings that remained intact after events like Hurricane Harvey and others, they were often of more recent construction, benefitting from stronger building codes. We can further fortify these standards and provide incentives for Floridians to retrofit their homes.”