The average home insurance policy now is about $6,000 in Florida. So the tax break is about 6 percent.
That’s a $360 annual savings on average for those with flood and home insurance. Those with just home insurance would see a 4 percent savings.
It doesn’t sound all bad until potential rate hikes are facing nearly every homeowner in Florida.
Mark Friedlander with the Insurance Information Institute said, unfortunately, that the small savings is going to be outweighed by increases in insurance next year.
Friedlander predicts significant increases in 2024, although not as much as in recent years.
“Citizens has already been approved for a 12.1 percent average statewide increase,” he noted.
Some industry experts predict some private companies could hike rates as much as 30 percent in 2024, forcing many people who own their homes to go without.
The governor’s plan also calls for setting aside $107 million annually in grant money to help homeowners pay a portion of improvements to strengthen their homes against storms.
“If you spend $10k, you get $5k back but. You have put out $10k,” Friedlander explained.
Approved companies like Eagle Roofing and Restoration of North Fort Myers can do the work.
“Whether it’s upgrading your windows or your roof-to-wall attachments, it helps in a variety of reasons and ways,” explained Gregg Martin, who owns Eagle Roofing.
Insurance agents like Reid McDaniel said the improvements can save people money each year.
“It could be a few hundred dollars a year or a few thousand dollars a year to over $10k a year. It really depends on the age and location and what types of features are being implemented,” McDaniel stated.
The grant program is known as the “My Safe Florida Home.”
“We’ve seen some clients use it, but overwhelmingly, a lot of people haven’t used it,” McDaniel said.
That could be because it ran out of money. In November, lawmakers added another $176 million to refund it.
“The good thing is that discount is going to stay for many years to come,” McDaniels explained.
It’s not clear how the governor will pay for the property insurance relief. Democrats say it will likely come from the 1,000 state jobs he’s proposing to eliminate.