Florida’s Home Insurance Market Sees Potential Stability with Increased Focus on Property Hardening

The Florida home insurance market, after years of tumult, shows signs of stabilizing, yet experts emphasize the need for substantial investment in home hardening to withstand extreme hurricanes. Charles Nyce, a risk management and insurance professor at Florida State University, stressed the importance of mitigation at the Florida Chamber’s Insurance Summit in Orlando. Hardening homes can significantly reduce losses for policyholders and insurers alike. This reduction in loss directly translates to lower costs for insurance companies.

Governor Ron DeSantis proposed an additional $107 million for the My Safe Florida Home program in the next state budget. This program provides up to $10,000 in grants for homeowners to invest in wind damage mitigation, like reinforced doors, windows, and roof connectors. These improvements can lead to fewer and smaller Florida home insurance claims.

However, experts at the Summit, including Nyce, agreed that while increased grant budgets are beneficial, they are insufficient given the frequency of major hurricanes in Florida. Nyce argues that the program needs a budget in the billions to effectively safeguard properties. Former state senator Jeff Brandes echoed this sentiment, pointing out that the current funding level would take over half a millennium to cover all homes in the state.

Overall, there’s a consensus that more action is necessary to make a significant impact on Florida’s home insurance market. Adequate funding for property hardening is essential to protect homes against hurricanes and reduce the overall strain on the insurance system.