The bill to provide storm coverage by Florida Civil Property Insurance companies is now available to anyone who wants it.
Rep. Hillary Cassell, who introduced the 143-page bill in December, retracted it last Friday the night before the session that began Tuesday.
In a brief phone interview with the South Florida Sun Sentinel, Kassel said “we are working with the speaker’s office to continue our conversation about the bill.”
The concept, she said, requires “detailed analysis” beyond what can be laid out in legislative bills.
Rep. Anna Escamani, co-sponsor of the bill with South Florida-based representative Christine Huntinschoffski and Marie Paul Woodson, said he understood that the bill was withdrawn while Kassel was probably working with Florida State University to fund a feasibility study.
“It’s a good bill, a key step in dealing with the Florida property insurance crisis, and there’s still a bipartisan agreement at the time,” said Escamani, who represents parts of East Orange County. “My understanding is that measures have been taken to further study the policy concepts of legal guidance and do my part to ensure that the state moves in a direction that provides our members with a universal range of storms.”
As Cassel said, mandating everyone with the availability of state-supported wind storm insurance is a complex and innovative concept. The establishment fundamentally overturns the state’s policy of booking citizen insurance, and is also the last resort option for homeowners and businesses in risky areas that cannot otherwise find or afford coverage.
By citing a law that requires the assessment of almost every insurance client in Florida due to a lack of citizens’ ability to pay all claims after a major catastrophe, lawmakers and civic officials are focusing on reducing through a massive depopulation program that encourages private zoolers to “take out” their customers.
Cassel’s bill would have turned that script upside down by requiring citizens to have wind storm coverage available in every home, including condominium buildings and mobile homes. Private market insurers can sell coverage along with “Multi-peril” products that cover all other types of claims, such as fire, lightning, and rain intrusions.
Kassel co-hosted a similar bill last year. Lee County Councilman Spencer Roach has since left the legislature. At a hearing before the House Insurance and Banking Subcommittee, Citizens CEO Tim Serio pushed back the proposal and said it could increase citizens’ reinsurance costs by 645%, up $5.6 billion.
However, Cassel and Roach argued that the idea would save policyholders money when private market insurers get into their pockets while there’s no storm in years. Those savings will go into the pool, they said, which would be able to pay the bills during the year the hurricanes attack.
In 2006, a former Florida representative proposed a similar plan, predicting that if the state could avoid a devastating storm for a decade, the pool would accumulate a $82 billion surplus. The state actually avoided the hurricane for the next decade, but the hurricanes have been hitting Florida at an accelerated pace since Hurricane IRMA in 2017.
Cerio, who dealt with the new bill during the subcommittee hearing on February 4, said the idea would be a “radical departure” from the civic mission, but added, “Obviously, whatever Congress decides to do, will do it.”
Cerio has also committed to making citizen officials available and providing accurate data for the study of ideas that Congress may request.
Shortly after introducing the bill in December, Kassel announced that she had changed her party from Democrat to Republican. With the appointment of House Speaker Danny Perez, Kassel, the lawyer representing policyholders in disputes with insurance companies, was in a position to force him to act on insurance issues.
With funding, it can be implemented by FSU’s catastrophic storm risk management centre. It is housed in the School of Risk Management/Insurance, Real Estate and Law at the University of Business.
In 2020, the center completed a citizens’ exposure analysis study. Citizens have considered opportunities to further reduce company exposure and increase the availability of residential property insurance in the private market.
Department officials did not immediately respond to emails asking about possible research.
Asked about the possibility of a feasibility study by FSU, Cassel said there has been no decision yet.
“I’m working with the administration to understand the next course of action for that law,” she said. “As you can imagine, such an idea requires a much more detailed analysis than what the bill can offer at this point. We need to look into the details of what it looks like before passing such a huge law. I’m excited to look at that potential outlook.”
Ron Burtibise covers South Florida Sun Sentinel’s business and consumer issues. He can be contacted by telephone at 954-356-4071 or by email at rhurtibise@sunsentinel.com.
Original issue: March 4th, 2025, 3:29pm
