Longtime U.S. Representative Frederica Wilson has introduced a bill in Congress aimed at stabilizing the troubled property insurance market and providing relief to homeowners nationwide, with a particular focus on Florida. The proposed legislation, known as the ‘Homeowners’ Defense Act,’ seeks to bolster state efforts in managing natural disaster risks, support insurance market stability, and encourage mitigation and preventive measures to reduce future losses.
The move comes as American homeowners face increasing insurance premiums, with a recent report by the Consumer Federation of America (CFA) revealing a 24% average increase over the past three years. Florida homeowners are among those most affected, paying an average of $9,462 annually for property insurance, or $789 per month.
“Everywhere I go in Florida, people are concerned about our property insurance crisis,” Wilson said in a statement. “With hurricane season just starting, the fear of rising homeowner’s insurance costs is real and tangible for families.”
The CFA report, titled ‘Overburdened: The Dramatic Increase in Homeowners Insurance Premiums and its Impacts on American Homeowners,’ used proprietary industry data to analyze insurance premiums across every ZIP code in the country. Nationally, typical homeowners paid $3,303 annually for property insurance in 2024.
Douglas Heller, CFA Insurance Director and one of the experts on Wilson’s panel, emphasized the need for action. “We need to invest in loss mitigation and resilience, and we also need to demand better oversight and more scrutiny of the insurance companies that we rely on to protect our homes.”
Miami-Dade County Commission Vice Chairman Kionne McGhee added, “The crushing weight of mortgages, taxes, and insurance is already wiping out generational wealth. We need to address this property insurance crisis head-on for the sake of families in Miami-Dade County and across the nation.”
Wilson introduced the bill following a briefing in Washington, D.C., with lawmakers and policy experts from Florida and other states. The congresswoman highlighted that property insurance has become too expensive, with limited options and many insurers refusing coverage. “It’s time we tackle this issue head-on,” she stated.
Key Provisions of the Homeowners’ Defense Act
While specific details of the bill are not provided, Wilson’s proposal aims to address the growing concerns over property insurance costs. The legislation is expected to support state-level efforts to manage natural disaster risks and promote measures to mitigate future losses.
Impact on Homeowners
The property insurance crisis has significant implications for homeowners, particularly in Florida. With insurance premiums rising twice as fast as inflation between 2021 and 2024, many are struggling to afford coverage. The situation is further complicated by the limited availability of insurance options and the refusal of many insurers to provide coverage.
Expert Insights
Experts like Heller and McGhee stress the importance of addressing the crisis through a combination of loss mitigation, increased resilience, and stricter oversight of insurance companies. Their comments underscore the need for comprehensive action to protect homeowners and preserve generational wealth.
As the property insurance crisis continues to affect homeowners nationwide, legislation like the ‘Homeowners’ Defense Act’ represents a crucial step toward finding solutions. With hurricane season underway, the urgency for such measures is particularly pronounced in vulnerable regions like South Florida.
