THE CHANGES WILL INVOLVE NEW LAWSUIT
LIMITS, AMONG OTHERS, TO EASE THE BURDEN TO
PROPERTY OWNERS. THIS WEEK,
THE FLORIDA SENATE GAVE ITS APPROVAL TO OVERHAULING
HOMEOWNERS INSURANCE IN THE STATE TARGETING
THE AREAS CAUSING PROPERTY OWNERS AND
THEREFORE INSURERS, THE LARGEST AMOUNT OF
PAIN. THE INDUSTRY IN THE STATE
WILL BE UNDERGOING A NUMBER OF CRITICAL CHANGES
TO HELP LIFT IT OUT OF CRISIS. AMONG
THE CHANGES TO THE HOMEOWNER'S INSURANCE INDUSTRY
THAT RECEIVED APPROVAL INCLUDE A NEW LIMIT ON
LAWSUITS. THERE ARE ALSO CHANGES
DESIGNED TO PUSH PROPERTY OWNERS BACK OUT OF COVERAGE
WITH CITIZENS, THE STATE-BACKED INSURER
OF LAST RESORT, WHICH IS CURRENTLY BLOATED WITH
POLICIES MOREOVER, THE
SENATE APPROVED AN ADDITIONAL $1 BILLION DOLLARS
IN TAXPAYER MONEY TO PROP UP THE CRUMBLING
INDUSTRY IN THE STATE. THE S.
B TO A LEGISLATION NEXT PROCEEDED TO
THE FLORIDA HOUSE AND ITS REPUBLICAN LED LEGISLATURE,
WHERE THE END OF WEEK SPECIAL SESSION CALLED BY
LAWMAKERS WILL FOCUS ON THE SENATE APPROVED
CHANGES. THE GOAL IS TO ADD SOME
STABILITY TO THE MARKET THAT SUFFERED EVEN GREATER
DAMAGE FROM HURRICANE IAN AFTER IT WAS ALREADY
STRUGGLING TO KEEP ITS HEAD ABOVE WATER.
THE HOMEOWNERS INSURANCE BILL WAS APPROVED
BY 27 TO 13 IN THE SENATE AND
IS CONSIDERED INDUSTRY FRIENDLY. WHILE
THE BILL IS MEANT TO BRING PEACE TO PROPERTY OWNERS
ACROSS THE STATE, THE FOCUS IS ON SALVAGING
THE INDUSTRY AS A WHOLE AND DOES NOT COME WITH ANY
GUARANTEE THAT POLICYHOLDERS WILL SEE RELIEF
IN THE PREMIUMS THEY ARE PAYING
AT THE SAME TIME FOR HOMEOWNERS INSURANCE
POLICYHOLDERS, PARTICULARLY THE
1.1 MILLION OF THEM CURRENTLY RECEIVING
THEIR COVERAGE THROUGH THE STATE SUPPORTED CITIZENS
PROPERTY INSURANCE CORPORATION. THERE WILL CERTAINLY
BE A DIFFERENCE FELT.
THE MARKET ITSELF IN THE STATE WILL UNDERGO SOME
NOTABLE RESHAPING DUE TO THE CHANGES THAT HAVE
BEEN APPROVED BY THE SENATE. SHOULD THEY MAKE THEIR
WAY THROUGH THE HOUSE AS WELL, THE MARKET
IS IN DIRE NEED OF GREATER STABILITY WHERE
MORE THAN A DOZEN INSURERS HAVE EXITED THE STATE
OR HAVE GONE BANKRUPT, WHICH WAS THE CASE FOR
SEVEN OF THEM. WHILE POLICYHOLDERS
ARE STILL LOOKING FOR RELIEF, THE GOAL AT THE
MOMENT IS TO RECOVER THE INDUSTRY'S DOWNWARD SPIRAL.
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