New Law Could Force Insurance Companies to Provide Windstorm Coverage in Florida

Although many accuse Florida’s government of being too lenient toward insurance companies, some lawmakers are trying their best to protect the rights of average homeowners. A new law could make it easier to get windstorm coverage, and this may prove to be a game-changer for those pursuing property insurance claims in Fort Lauderdale. How would this potential law work, and how would it benefit you?

Florida Lawmakers Want to Improve Access to Insurance 

In December of 2024, WPTV reported that a new bill had been sponsored by a Broward County lawmaker. If passed into law, House Bill 13 would force one specific insurance company in Florida to offer windstorm coverage to all homeowners across the state. The lawmaker says that she modeled this approach on a similar system in California, where insurance is available to every resident for natural disasters. She says that if Florida lets the private market “pick up the rest,” rates would drop “like a stone.”

However, the insurance company that would be tasked with providing this coverage is not so enthusiastic. Representatives of this company say that if they became the provider of first resort for windstorm coverage, they would have to cover over $3.2 trillion in insured value. This is “untenable,” according to company reps.

While this is certainly an interesting topic in Florida’s insurance world, the bill is not actually that new – and it was first proposed many months ago. Since then, it has progressed very little. No one really knows whether this Bill will ever pass into law. However, we do know that California’s equivalent (the Earthquake Authority) seems to have reduced rates since being introduced.

Critics say that it is not fair to compare California to Florida in this way. For starters, major earthquakes in California are far less common and costly than hurricanes in Florida. Secondly, Florida’s insurance system is in bad shape – while California’s insurance industry is not facing the same kinds of pressures.

One thing is clear: Something about Florida’s insurance system must change. Even if this Bill does not pass into law, it might still spark helpful conversations about the future of the industry in the Sunshine State. Revised or similar Bills could eventually succeed where this one has failed – and lawmakers could be on the right general path. Insurance providers, homeowners, and lawmakers all agree that the insurance industry needs reform.

 Contact Our Fort Lauderdale Property Insurance Lawyers Today

At Geyer Fuxa Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Sources: 

wptv.com/money/real-estate-news/florida-bill-would-require-citizens-insurance-to-provide-windstorm-coverage-to-homeowners

liveinsurancenews.com/windstorm-citizens-insurance/8560882/