
Florida is taking a bold step to address its turbulent home insurance market with House Bill 13, sponsored by Rep. Hillary Cassel. The legislation seeks to make Citizens Property Insurance Corp., the state’s insurer of last resort, responsible for all windstorm damage claims. Homeowners would still need private coverage for other risks like fire and theft.
HB13 draws inspiration from California’s centralized natural disaster insurance model, which has reportedly stabilized premiums. Proponents argue the bill could simplify windstorm coverage, make premiums more affordable, and provide peace of mind to homeowners, especially in hurricane-prone areas. With Florida experiencing increasing damage from climate change-driven storms, the need for reform has never been greater.
However, critics warn of significant challenges. Citizens Insurance CEO Tim Cerio cautions that the program could strain resources, given the $3.2 trillion in insured value the company would need to manage. Concerns about affordability also persist, as higher deductibles may leave some homeowners without adequate protection. While the bill could create opportunities for private insurers to focus on non-storm-related coverage, it raises questions about accessibility and affordability for vulnerable Floridians.
House Bill 13 represents a pivotal moment for Florida’s insurance market, highlighting the state’s effort to adapt to climate risks. With the legislature set to debate the bill in March 2025, its outcome could redefine how disaster-prone communities nationwide approach insurance reform and climate resilience.