Insurance

Independent insurance agents expect premiums to drop if Florida lawmakers do these 2 things

This week, for the first time in a long time, independent insurance agent Derrick Vance is hopeful.

“It’s a glimmer,” Vance said.

Vance, the owner of Brightway Insurance The Vance Agency in Winter Springs, pointed to two components of the proposed legislation making its way through the special session that would have the biggest impact on lowering premiums as quickly as possible.

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Lawmakers in Tallahassee said they will tackle loopholes that have allowed unscrupulous roofers to hand out “free” roofs and sue insurance companies.

Proposed legislation would allow insurers to offer policies with a separate roof deductible like they offer separate hurricane deductibles.

“In essence, if a customer has an option to have a different deductible or separate deductible just for the roof, he or she could potentially lower the overall premium that they would pay for that policy,” Vance said.

And if insurance companies sell and homeowners buy actual cash value policies — meaning roof payouts are based on the age of the roof — premiums will drop because everyone wouldn’t get a new “free” roof.

The second big change lawmakers are looking to make this week is updating the Florida Building Code, which currently requires that a roof be replaced if more than 25% of it is damaged. Legislation is aimed at allowing more repairs, instead of requiring replacements.

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Why will it take upwards of a year for consumers to see any relief that lawmakers might pass this week?

Vance said insurance companies have to get approval to make their changes and actuaries have to calculate new risk and new rates — and all of that takes time.

Copyright 2022 by WKMG ClickOrlando – All rights reserved.


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