Florida legislators Sign up for quick fixes to the state’s property insurance crisis But critics say the plan pays little attention to the growing threat of climate change.
Insurance and risk management experts agree, Florida private session It was essential to reduce insurance fraud – from issues such as restricting contractors door-to-door to repairing roofs with minimal damage.
But Charles Nice, associate director of the Center for Risk Management Education and Research at Florida State University, said fraud is only part of the problem. There are hurricanes, and doubts surrounding the most dangerous storms due to the warming of the climate.
“What we’ve been seeing in the last couple of years is these two things happening,” Ness said. “We’re seeing a lot of turbulent activity from 2016-2017 until today, and we’re seeing a lot of fraud. And insurance companies haven’t been able to survive these two things happening simultaneously.”
Nice warned that as severe storms are reflected in disaster models, insurers will adapt to avoid potential losses — as they do with sea level rise, wildfires and other natural disasters.
Other options, Ness said, would be telling people they can’t live on the beach, or finding ways to keep the water out. Given the reluctance to restrict homes in certain areas, he said, he was happy to see lawmakers offer up to $10,000 grants to make homes less vulnerable to storm surges.
He said he would support social programs for people who would be disproportionately affected by climate change.
“Let the insurance companies charge what the actuarial fair rate is for the risks they pose,” Ness said. “And if that’s unaffordable for some people, you’re creating a social program that addresses the affordability of insurance.”
According to the Bureau of Insurance Regulation, Florida accounts for 9% of homeowner insurance claims in the country, and 79% of claims-related lawsuits filed.
Catastrophic losses such as Hurricane Andrew have driven many large national insurance companies out of the state, leaving Florida residents with fewer coverage options.
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