Just 7 months ago, Governor DeSantis signed two bills to support disaster relief and help stabilize Florida’s property insurance market. This signing occurred after a special session of the legislature was called to address the matter. See bill information here.

Everyone cheered and felt a sigh of relief.

But hold your horses, it appears rates are rising again.

The reinsurance industry, which provides coverage to insurance companies themselves, has recently informed its clients about an alarming surge in underwriting catastrophic coverage costs. According to Gallagher Re’s latest 1st View renewals report, catastrophe loss hit business in Florida has increased by 30-40%. This significant increase can largely be attributed to last year’s hurricane Ian, the strongest hurricane to make landfall in Florida since 2018’s Michael.

The repercussions of these developments within the reinsurance market will have a direct impact on individual policyholders. Insurance companies, faced with higher catastrophe rates imposed by reinsurers, will pass on these increased costs to homeowners seeking coverage for their commercial buildings, residential homes, vehicles, and recreational vehicles (RVs).

The alarming rise in homeowner’s insurance premiums has resulted in some insurance firms withdrawing from the market to avoid heavy losses. The situation in Florida is precarious, as the major carriers have left, leaving behind a market filled with numerous small and thinly capitalized insurers—an unfavorable scenario for consumers.

In Florida it is unreal but… the costs of some homeowners insurance have now surpassed the mortgage payments for many middle-class families. This unsustainable situation places an enormous strain on homeowners who are already grappling with the high cost of living in the state.

Homeownership is an essential aspect of the American dream, but for residents of Florida, the rising costs of homeowners insurance are casting a shadow over this cherished aspiration.

What can the Legislature do? What can the Governor do? We don’t know but one thing is certain, we need their attention to this massive spike in every day living for all of us in Florida. This affects everyone – whether they own a home or not. Rental prices rise because of homeowner’s insurance rising costs to their landlord.

It’s serious business and Governor DeSantis needs to get back home to Florida and address it. Otherwise, his supporters will be pulling the lever in the ballot box for someone else.