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Florida Insurance Crisis Relief: New Insurance Companies Approved to Operate in Florida

Florida homeowners can take a sigh of relief, Orion 180 Insurance Company and Orion 180 Select Insurance Company were approved for operations in Florida on Tuesday. They joined both Mainsail Insurance Company and Tailrow Insurance Company which were approved in the previous months. This news comes during a crucial period in Florida’s insurance market, Florida has lost some form of home coverage from over 30 insurance providers in the past three years.

Florida Consumer Protection Legislation

The four insurance companies moving to Florida come off the back of the new legislation that was approved that help protect insurance policyholders. The bills that were signed are intended to strengthen Florida’s property insurance market, expand the state’s home hardening and hazard mitigation programs, and further protect consumers against bad actors.

Senate Bill 7052 (SB 7052)

Senate Bill 7052 was introduced to “enact several consumer protection measures that further increase competition and accountability in Florida’s property insurance market”. It does so by Clarifying that once a roof deductible is applied, no other deductible under the policy may be applied to any loss caused by the same covered peril. This makes it so you won’t have to pay multiple deductibles for the same covered peril. The bill also requires property insurance mitigation discounts to be updated at least every five years and requires insurers to provide consumer-friendly information on their website describing hurricane mitigation discounts available to policyholders. Another important part of the bill is that it prohibits any altering or amending of an adjuster’s report without providing a detailed explanation for any reduction of the estimate of the loss. To learn more about everything included in the bill visit the Insurer Accountability bill summary.

House Bill 799 (HB 799)

House Bill 799 is aimed at expanding mitigation discount programs for policyholders. The bill does so by providing that a property insurer’s residential rate filing must allow for appropriate discounts for mitigation measures that reduce the potential for windstorm losses. It also requires residential property insurers to provide reasonable discounts, credit, or appropriate reductions in deductibles for wind uplift prevention measures as a part of their rate filings. To learn more about everything else included visit the Property Insurance bill summary.

New Insurance Companies Enter Florida

Florida’s home insurance premiums are some of the highest in the country and are expected to continue to rise throughout 2023. Floridians are hoping the entrance of the new insurance companies can increase competition and lower insurance premiums.

Today’s announcement is another sign that the (legislative) reforms are having a positive impact on Florida’s insurance market. We look forward to continuing this momentum and giving consumers more options in the market for homeowners insurance.

Michael Yaworsky (Florida Insurance Commissioner)