>>LAUREN VERNO: WELCOME BACK, EVERYONE. GOVERNOR RON DESANTIS SIGNED OFF ON
PROPERTY INSURANCE LEGISLATION
INTENDED TO STABILIZE COST AND
MAKE IT EASIER FOR YOU TO GET
AND KEEP INSURANCE HOME.
OWNERS AND INSURERS ARE HOPING
THE BIPARTISAN CHANGES WILL
BRING RELIEF FOR CUSTOMERS AND
FOR COMPANIES WHO EITHER CAN’T
PAY OUT CLAIMS OR ARE
CONSIDERING LEAVING THE STATE.
HERE’S SOME OF THE DETAILS.
THE BILL INCLUDES A PROVISION
BANNING INSURERS FROM
AUTOMATICALLY DENYING COVERAGE
OF THE ROOF IS LESS THAN 15
YEARS OLD. YOU GUYS GOT HIT BY
THAT THIS YEAR. INSURERS ALSO
HAVE TO PROVIDE POLICYHOLDERS
WITH SOME TYPE OF EXPLANATION
IF THEY DENY OR PARTIALLY DENY
A CLAIM. NOW, THIS COMES AS A
CRUCIAL TIME. WE’VE BEEN
TALKING ABOUT HURRICANE SEASON
STARTING NEXT WEEK, WHICH
SOMETIMES HIGHLIGHTS THIS
PROBLEM EXACERBATED EVEN MORE.
JOINING ME NOW IS MARK
FREELANDER WITH THE INSURANCE
INFORMATION INSTITUTE.
HIGHMARK. THANKS FOR JOINING
US TODAY.
>> THANKS FOR HAVING ME.
REALLY APPRECIATE. YEAH. THIS
IS A COMPLICATED ISSUE. IT
SEEMS THERE JUST ISN’T REALLY
ENOUGH MONEY TO GO AROUND. THE
NEW LAW DOES CREATE THIS
2 BILLION DOLLAR REINSURANCE
TO ASSIST POLICYHOLDERS
PROGRAM. SO HOW WILL THAT WORK
AND HELP OUT FOLKS?
>> THAT’S AN STOPGAP FOR
INSURANCE COMPANIES THAT HAVE
BEEN UNABLE TO GET RE
INSURANCE COVERAGE FOR
HURRICANE SEASON. AND
REINSURANCE IS BASICALLY
INSURANCE FOR INSURANCE
COMPANIES TO BACKSTOP TO
PREVENT THEM FROM COMPLETELY
DEPLETING THE RESERVES. IF WE
SUFFER A MAJOR LOSS SUCH AS A
HURRICANE.
>>LAUREN VERNO: BECAUSE THAT’S
WHAT’S HAPPENED. I MEAN, I
KNOW AS A CUSTOMER, I FELT IT.
BUT THESE INSURANCE COMPANIES
THEY’VE HAD TO LEAVE BECAUSE
THEY’VE HAD BILLIONS OF
DOLLARS IN LOST. SO IN TURN,
IF THEY HAVE ACCESS TO THAT
MONEY, HAD THEY PASS THAT
SAVINGS ON TO THE CUSTOMER?
>> POTENTIALLY THEY COULD
PURCHASE THIS OR BE, YOU KNOW,
US. I GUESS, ALLOWED TO USE OR
TAP THIS FUND AND THE FUND IS
ACTUALLY LESS THAN WHAT IT
WOULD COST THEM ON THE PRIVATE
MARKET. SO THAT WOULD BE AN
AVENUE. 2. PASS ALONG SAVINGS
TO CUSTOMERS. BUT AT THIS
POINT, THIS IS SO NEW, WE
DON’T REALLY KNOW HOW EXACTLY
THAT’S GOING TO WORK. BUT
THAT’S WHAT THE BILL HAS THE
POTENTIAL TO PASS SAVINGS ON
TO CUSTOMERS.
>>LAUREN VERNO: ALL RIGHT. SO
LET ME ASK ALSO WAS ICE ON
THEIR THAT THEIR GRANTS UP TO
$10,000 THAT SOME WHOA, NO
HOMEOWNERS CAN GET TO SHORE UP
THEIR HOMES.
>> HOME HARD IN THE PROGRAM IS
A 2 FOR ONE TYPE OF GRASS. SO,
FOR EXAMPLE, SAY THE HOMEOWNER
INVEST $3,000 IN 4 TO FIND THE
ARE INSTALLING A WIND RATED
GARAGE ARE WHEN RATED WINDOWS
FOR HURRICANE SEASON. THEY
WILL GET 6,000 HOURS IN GRANT
MONEY IF THEY THERE’S ALL
TYPES OF RULES AND REGULATIONS
FOR HOW TO GET THE GRANT. BUT
IF YOU QUALIFY POTENTIALLY YOU
COULD GET A DOUBLE WHAT YOU
INVEST IN TERMS OF GRANT
FUNDS. THAT WOULD CERTAINLY BE
HELPFUL. LET’S TALK ABOUT THE
RIGHT NOW. YOU KNOW, DEMOCRATS
HAVE EXPRESSED CONCERN BECAUSE
THESE PREMIUMS LIKELY WON’T
DROP FOR ANOTHER 12 TO 18
MONTHS. REPUBLICANS AGREE WITH
THAT TIMELINE AS WELL.
>>LAUREN VERNO: SO IS THERE
ANY IMMEDIATE RELIEF THAT
PEOPLE SEE AFTER THE SIGNING?
>> WELL, UNFORTUNATELY, NO AT
THE LEADERS OF THE SENATE
TALKED ABOUT DEADLY THIS WEEK.
IT’S A SPECIAL SESSION. AND
WHILE THEY’RE VERY HOPEFUL
ABOUT 18 MONTHS DOWN THE ROAD,
THERE WILL BE SOME RELIEF FOR
HOMEOWNERS. THEY WOULDN’T
GUARANTEE THAT. JUST HOPING
THAT ALL OF THE NEW
REGULATIONS THAT ARE BEING PUT
IN PLACE WILL START THE ROAD
STABILITY OF FLORIDA IS VERY
PRECARIOUS INSURANCE MARKET
AND IT WILL BE A PAYOFF IN
LONG-TERM WITH SAVINGS FOR
HOMEOWNERS AND MORE STABILITY
FOR INSURANCE COMPANIES. YOU
KNOW, I FEEL LIKE IN FLORIDA
AND NEW, AT LEAST HERE IN
NORTHEAST FLORIDA. WE’VE HAD A
BIT OF A BREAK WITH
HURRICANES.
>>LAUREN VERNO: BUT THAT’S NOT
GUARANTEED. I MEAN, WE’RE JUST
GOING TO SEE BIGGER MORE
STORMS COMING THROUGH THE
STATE OF FLORIDA. SO LET’S
TALK ABOUT IT. IF THIS IS A
BAND-AID OR DOES IT REALLY
HAVE LONG-TERM POTENTIAL TO
HELP A PROBLEM THAT JUST SEEMS
TO PLAYING FLORIDA?
>> WELL, PART OF IT SUB
CERTAINLY THE NEW REINSURANCE
FUND IS A BAND-AID BECAUSE
THAT’S PRETTY MUCH A LIFELINE
TO SEVERAL INSURERS IN ORDER
FOR THEM TO CONTINUE TO
OPERATE AS HURRICANE SEASON IS
JUST A FEW DAYS AWAY. BUT MANY
OF THE OTHER REGULATIONS WILL
BE BAR LONGER TERM AND WILL
HELP BUILD THE STABILITY THAT
WE NEED IN OUR MARKET.
>>LAUREN VERNO: ALL RIGHT.
WELL, IF YOU HAD TO SAY IN
JUST 20 SECONDS, WHAT YOU
THINK THE SOLUTION WOULD BE,
YOU GOT ANY THOUGHTS ON THAT.
>> IT’S REALLY TOUGH BEING.
THERE ARE SO MANY PROBLEMS
WITH THE MARKET. WE KNEW GOING
INTO SESSIONS. THIS WOULD NOT
BE A CURE. ALL WE UNDERSTAND
THAT. BUT YOU NEED TO START TO
TAKE STEPS IN THE DIRECTION OF
STABILITY. ALRIGHT, WITH A
PASSES IN 3 DAYS. SO EVERYONE
SEEM TO THINK THIS WAS
IMPORTANT. SO WE’LL SEE WHAT
HAPPENS ESPECIALLY OVER THE