What You Need to Know About the Florida Insurance Market
Did you know? When you are in Florida, you are never more than 60 miles away from an ocean. That’s why when disaster strikes, it’s a statewide attack. But, the good news is, since Hurricanes Ian and Nichole, we have seen some of the best progress regarding the response to insurance claims.
For Shepherd specifically, we have seen roughly 85% of our more than 3,200 clients’ Hurricane Ian claims completed. This is allowing more and more of the people impacted to be able to put the disaster behind them.
The response to this natural disaster statewide hasn’t been perfect, but the resolution has come quicker than previous natural disasters of this scope in the state of Florida.
After Hurricane Ian slammed the Sunshine State, dealing between $50 billion and $65 billion in estimated damage, Florida’s already troubled property insurance market was pinched even more. This increased demand for help in the insurance sector in Florida was one of the reasons that Senate Bill 2A was introduced and passed by Governor Ron DeSantis and the Florida Legislature.
Here are a few things you should know about the boldest Florida insurance reform ever to be passed.
- The State has shortened all claim-related deadlines for insurance companies. This means that you will now be contacted, communicated and likely compensated quicker during claims. Some of these deadlines were shortened by more than 50%.
- Senate Bill 2A repealed the assignment of benefits (AOBs). These AOBs granted attorneys the authority to make decisions rather than the homeowner. This resulted in claims being drug out or inflated to benefit the attorney, not the property owner. It was also a leading cause of the increase in scammers in Florida.
- Senate Bill 2A also repealed the one-way attorney fees status. This repeal addressed the abusive litigation tactics throughout the state. For example, many attorneys were tripling their average hourly rate regarding insurance claims resolutions. This led to situations where the attorney collected more money than the contractor who repaired the home.
Here is what you can expect in 2023.
New insurance companies and products are coming to the Florida market. After the passing of Senate Bill 2A, many companies have already committed to entering and reentering the market due to the new protection offered to clients.
This will result in two things:
- New companies entering the market breeds competition, leading to better service and pricing for you.
- New insurance products and coverages being rolled out will help to support you with things like older homes with older roofs.
We understand that it has been an interesting year for insurance in Florida. But our local team at Shepherd Insurance is here to help answer any questions and keep you updated on any new changes in 2023.
We have offices in Port Charlotte and Sarasota, and we might be slightly biased, but we believe we have the best team in the state. Our knowledgeable and friendly team is here to help you. Happy National Florida Day.