Senator Rick Scott is reintroducing legislation aimed at reducing insurance costs for homeowners across the United States. The Homeowners Premium Tax Reduction Act proposes an above-the-line federal tax deduction of up to $10,000 for insurance premiums on primary residences. This move could provide significant relief to homeowners nationwide, including those in Florida where average annual premiums exceed $5,000 in cities like Miami.
Scott argues that while property insurance is managed at the state level, the federal government has the power to ease the financial burden on families by allowing this tax deduction. “My Homeowners Premium Tax Reduction Act is a great opportunity to directly ease this burden and give families more breathing room in their budgets,” Scott stated. Having served as Governor until 2018, Scott has been vocal about the rising insurance rates in Florida, criticizing his successor, Governor Ron DeSantis, for what he describes as a “disaster” in the state’s insurance marketplace.
However, DeSantis has countered that the insurance market has stabilized following previous turmoil. He noted that more than half of Citizens Insurance policyholders in Broward and Miami-Dade counties are experiencing year-over-year price reductions. Michael Yaworsky, Commissioner of Florida’s Office of Insurance Regulation, also testified to the market’s stability earlier this year, stating that “most people are managing to afford insurance” with average household costs stabilizing around $3,700.
The proposed legislation seeks to address the pressing issue of homeowners insurance costs, which have been a significant concern in Florida and beyond. By providing a federal tax deduction for insurance premiums, Scott’s bill aims to offer financial relief to homeowners struggling with rising insurance expenses.
