Guest Column By Josiah Neeley
Florida’s homeowners insurance market is in the emergency room on life support. Homeowners and insurance agents across the state struggle to obtain reasonably priced homeowners insurance. In 2022, the average annual premium for a homeowners insurance policy was $4,231, close to three times the U.S. average of $1,544, and nearly twice Florida’s $2,505 average just two years ago. In 2023, premiums are on track to climb even higher. The Florida state legislature held two special sessions in 2022 focused on making insurance more available and affordable. Although the meetings helped raise lawmakers’ awareness of the cause of the crisis and introduced measures to arrest further market deterioration, reasonably priced insurance is expected to remain hard to find in 2023.
Case Study: Indian River State College
Florida’s economy is strong. If Florida were a country, its gross domestic product (GDP) would rank 14th among economies worldwide, and its ambitions do not stop there. Florida aims to be within the top ten economies by 2030. By this time, two in three jobs are expected to require specialized training, a credential, or a degree. To achieve its economic goal, Florida will need to continue developing its specialized workforce. With 120,000 students completing Florida College System (FCS) programs each year, the FCS plays a critical role in providing the talent pipeline necessary to reach Florida’s economic goal and does so at a very affordable cost to students and Florida taxpayers alike.
Florida has always endured a complex property insurance market due its unpredictable weather and proneness to hurricane catastrophes. Recent issues, however, have nearly pushed the market to the brink of collapse. With the combination of insurance company insolvencies, excessive litigation from fraud, and the recent devastation from Hurricane Ian, Florida’s crisis continues to worsen.
Florida TaxWatch is pleased to present taxpayers with a guide to the FY2022-23 state budget, which went into effect July 1, 2022. The report includes all appropriations for the new fiscal year— the General Appropriations Act (GAA), “back-of-bill” spending, and general bills—net of the Governor’s vetoes.
Florida is facing a property insurance crisis and the governor has called the legislature back to Tallahassee, May 23-27, to tackle the issue. While the proposed bills to be discussed have not been filed yet, the Governor’s proclamation announcing the special session suggests areas that should be addressed, including reinsurance, building codes, litigation reform, and Citizens Property Insurance. Why is this such a pressing issue?
With more than 8,400 miles of coastline and a flat, low-lying coastal topography, Florida is especially vulnerable to the effects of sea level rise. Tens of thousands of Florida homes and businesses are at increased risk from sea level rise. Much of Florida’s critical infrastructure is at low elevations, designed and built with little consideration of future sea level rise. The physical effect of changing climate translates into real economic impacts.
Medicaid is a joint federal-state health insurance program that provides medical coverage to more than four million low-income Floridians. Administered by the state Agency for Health Care Administration, Medicaid is jointly funded through a federal cost-sharing agreement. During fiscal year 2020-21, Florida’s appropriated budget for Medicaid is $29.7 billion.
In this research report, TaxWatch looks at the success of the IMR program in California in an attempt to answer the question “what if IMR was in use in Florida?” TaxWatch is pleased to present policymakers and stakeholders with an independent analysis of a program we think may be helpful in keeping the costs of workers’ compensation insurance down while helping to ensure that injured workers receive appropriate treatment.
The Constitution Revision Commission is considering a proposal (P88) that, if approved by the voters, would create a new section in the Constitution to establish a “bill of rights” that expands litigation for residents of nursing homes and assisted living facilities in Florida. Florida TaxWatch has undertaken an analysis of P88 to guide Commission members in their deliberations regarding P88 and its committee substitute (CS/P88), and to educate the voters should the Commission recommend CS/P88 be placed on the ballot for the November 2018 General Election.
This report analyzes the effects of applying a border-adjusted tax to reinsurance transactions, and estimates the impact of such a tax on Florida’s policyholders, the property insurance market, taxpayers, and the economy.