Insurance Crisis in Florida, Across the Nation, Gets National Spotlight

A rare national spotlight on one of the top concerns on the minds of Floridians. On Wednesday, the U.S. Senate Budget Committee debated the cause of the insurance crisis plaguing homeowners around the country.

Source: CBS News | Published on June 6, 2024

Florida insurance crisis

A rare national spotlight on one of the top concerns on the minds of Floridians. On Wednesday, the U.S. Senate Budget Committee debated the cause of the insurance crisis plaguing homeowners around the country.

Democrats identified climate change as the ultimate driving force behind rising premiums while Republicans pointed to high government spending and inflation.

As Florida faces an increased threat of hurricanes, heat waves, and flooding, national insurers have dropped plans or raised prices in disaster-prone areas. Some residents are left uninsured or priced out. Others have turned to Citizens Property Insurance, an insurer of last resort backed by the state.

As the summer approaches, homeowners are bracing for a season of extreme weather.

Mark Friedlander from the Insurance Information Institute said while some want to blame it all on climate change, the insurance crisis is more likely due to population shifts, inflation, legal system abuse, and regulatory issues.

In the meantime, Florida homeowners can soon apply for grant funding to harden their homes. The application window for the My Safe Florida Home program opens on July 1st.

The program offers matching grants of up to $10,000 for repairs to help homes better withstand storms, such as reinforcing roof-to-wall connections, upgrading roof coverings, and upgrading doors and windows.

Homeowners can potentially lower their insurance premiums by participating in the program.