Proposed House Bill 1213 Aims to Transform Citizens Property Insurance into Primary Windstorm Coverage Provider

In a move that could significantly alter the landscape of property insurance in Florida, State Representative Spencer Roach, alongside State Representative Hillary Cassel, has introduced House Bill 1213. This bill proposes to transform Citizens Property Insurance (Citizens), currently a government-backed insurer of last resort, into a primary provider of windstorm coverage for Florida residents. This initiative mirrors Roach’s personal experience with Hurricane Ian in 2022, which left him grappling with insurance issues after his insurer, UPC, went bankrupt.

The proposed bill suggests a model similar to the National Flood Insurance Program (NFIP), but with a state-level focus and specifically targeting wind damage coverage. Despite the NFIP’s debt issues, Roach is confident in the fiscal solvency of Florida and believes the fund can grow and prosper, especially during storm-free periods. However, the bill has stirred concerns within the insurance industry, with experts worrying about the potential financial burden on the state.

Currently, Citizens acts as a safety net for those unable to secure coverage in the private market. Under the new bill, it would offer competitive premiums and become a go-to option for windstorm insurance, fundamentally changing its role and potentially impacting the private insurance market. This shift raises questions about the sustainability and long-term impact of such a change, particularly in a state prone to hurricanes and severe storms. The bill, still seeking a senator sponsor, could bring a new era of windstorm insurance coverage in Florida, balancing the need for affordable insurance with the challenges of managing a state-backed insurance fund.