Cutting our carbon emissions can cut our property insurance costs
When we invest in technologies like solar energy, we slow the effects of a warming climate and storm events on our property insurance rates.
A recent public opinion survey showed that 56% of respondents believe that property insurance rates are so high in Florida now due to extreme weather events being more common.†
And 75% believe that regardless of the cause of extreme weather events in Florida, that our leaders can do more to protect residents from these impacts.†
† Breakthrough Research survey of 500 Florida voters conducted May 13-16, 2022.
The property insurance crisis
is picking up steam
The property insurance crisis is picking up steam, as six companies have fled Florida or become insolvent within the last 18 months, according to government officials.
Insurance carriers just can’t keep pace with the number of storm claims, and their loss is outpacing what carriers can charge. Imagine what homeowners would be paying if carriers could charge enough to keep up with catastrophic weather damage? Already though, hundreds of thousands of homeowner policies are being canceled, as companies terminate Floridian’s coverage due to insurer’s inability to secure and maintain financial strength.
Citizens Insurance—the insurer of last resort—is waiting to hear back on a decision from the Office Of Insurance Regulation on a rate increase of 11% in the coming year.
A spokesperson for Citizens Insurance, Michael Peltier said, “If perchance a big storm would hit and would exhaust our ability to pay, Citizens is required to level surcharges on our policymakers. And then if a deficit is still there, we have to levy assessments on Floridians, and that's the risk that we're trying to avoid.”
If perchance a big storm would hit and would exhaust our ability to pay, Citizens is required to level surcharges on our policymakers. And then if a deficit is still there, we have to levy assessments on Floridians, and that's the risk that we're trying to avoid.
— Michael Peltier, Spokesperson for Citizens Insurance
Recent News Coverage Bears this Out
Florida home insurance agency enters financial restructuring plan, 68,000 total policies to be canceled
The Capitolist |
Just days before lawmakers are set to convene at the state capitol to reform property insurance, FedNat Insurance Co., a Florida-based property insurance agency, entered into a financial restructuring plan.
Legislators Can Fix This
The Florida Legislature meets to debate what to do about the property insurance crisis on May 23, 2022.
Maybe that debate should include a discussion about fighting the cause of extreme weather and the climate change that’s caused those fierce winds, rising tides, warming seas, and all the costs of increased storms that jack-up Florida’s home insurance rates.
After all, that same public opinion survey, conducted just last weekend, found that more than half (55%) of Floridians say property insurance costs would make them want to tell close friends or family to NOT buy a home in Florida. That finding was nearly twice the rate of those who cite crime rates (30%) as a reason for telling someone to avoid buying a home in Florida.
If Florida lawmakers want to sustain our economy and quality of life, they must make changes to what rates insurance companies can charge and tackle any corruption in the system.
They also have to confront what extreme weather costs Florida, and make changes to carbon emissions to slow the process of climate change.