Beyond Band-Aids: Building a Sustainable Future for Florida’s Homeowners Insurance
Beyond Band-Aids: Building a Sustainable Future for Florida's Homeowner Insurance
By Don Brown
Florida's paradise comes with a price tag, and lately, that price tag seems to be skyrocketing when it comes to homeowner's insurance. We've all seen the headlines – premiums doubling, tripling, even forcing some residents out of their homes altogether. It's a crisis demanding solutions, but before we jump to conclusions, we need to diagnose the real problem.
The high cost of insurance isn't a malicious plot by insurance companies. It's a symptom of two fundamental issues: Florida's vulnerability to hurricanes and our collective tendency to build in high-risk areas. Think of it as a chronic illness – addressing the symptoms (high premiums) won't cure the underlying disease.
Citizens Property Insurance Corporation, initially intended as a last resort for those who couldn't find coverage elsewhere, has become overburdened. Imagine a safety net becoming a trampoline – it might be fun for a while, but eventually, everyone gets hurt. A $50 billion hurricane could cripple Citizens, leaving policyholders and taxpayers scrambling.
So, what's the cure? It's not a one-size-fits-all solution. We need a multi-pronged attack that addresses both the cause and effect.
Firstly, we need to build smarter, not harder. While we have one of the best building codes in the nations, it can be improved. New and improved construction techniques are now available and will transform our homes from sandcastles to fortresses. It's an investment, but one that pays off in the long run, just like taking vitamins to prevent illness. Our building code may be good, but excellence in one area is no excuse for mediocrity in another. Think of our building code “Plus” the newest technology. We can do better.
Secondly, promoting mitigation strategies is crucial. Elevating properties in flood zones, reinforcing roofs, and installing hurricane straps are proactive steps that minimize damage and ultimately, insurance costs. Think of it as preventative maintenance for your home – a little effort now saves a lot of stress later.
Thirdly, responsible development is critical. Building high-rises on the beach might look glamorous, but it's like parking your car in the middle of a busy intersection. More thoughtful land-use planning that discourages development in high-risk zones is essential for long-term safety and affordability.
Finally, Citizens needs to return to its original purpose – a safety net, not a primary source of insurance. Clear guidelines will ensure it helps those who truly have nowhere else to turn.
These solutions all point towards a set of guiding principles:
Leveraging the Private Market: Let the free market drive competition and innovation, ensuring a more comprehensive range of options and potentially lower costs.
Individual Responsibility: Homeowners must manage risk. Choosing a low-risk location and investing in mitigation are smart decisions that benefit everyone.
Targeted Assistance: Temporary government assistance can provide a helping hand for vulnerable populations until they find their footing.
Risk Mitigation: Building codes and mitigation efforts minimize overall losses, making insurance affordable for everyone.
Comprehensive Solutions: Any solution needs a plan outlining roles and responsibilities for homeowners, insurers, and the government. Working together ensures a holistic approach.
Climate Resilience: Solutions should be adaptable to the changing environment, accounting for the potential impact of climate change on future storms.
We can move beyond temporary fixes and band-aid approaches by holding proposed solutions accountable to these principles. We need comprehensive plans for a sustainable future for Florida's homeowner insurance.
Ultimately, Florida's insurance crisis is a shared challenge. By working together, with a clear understanding of the problem and a commitment to long-term solutions, we can ensure that every Floridian can access affordable, reliable insurance. Let's build a future where the storm clouds of insurance woes don't perpetually shadow the sunshine state. We can do this.
For a thorough discussion of this topic and others, please order my book:
"The 9 Guideline Principles to Enact Change: A Legislator's Memoir - From Outhouse to State House." At: www.dondbrown.com or https://www.amazon.com/author/dondbrown.
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