A bill that aimed to expand windstorm coverage in Florida has been withdrawn, signaling a shift towards further analysis of the complex issue.
Rep. Hillary Cassel, who introduced the 143-page bill, decided to withdraw it shortly before the legislative session began. In a brief interview, she mentioned ongoing discussions with the speaker’s office regarding the bill’s future. Cassel emphasized that the concept requires “in-depth analysis,” suggesting it goes beyond the scope of a legislative bill.
Rep. Anna Eskamani, a co-sponsor of the bill, acknowledged the withdrawal and stated that the move allows for funding of a feasibility study, potentially in collaboration with Florida State University. Eskamani voiced her support for the bill’s underlying goals, stating, “This is a good bill and an important step in addressing Florida’s property insurance crisis… I will do my part to ensure that the state moves in the direction of providing universal storm coverage for our constituents.”
As Cassel pointed out, making state-backed windstorm coverage available to all residents is a significant change to current policy. The state currently limits Citizens insurance to high-risk areas where private insurance is unavailable or unaffordable. Cassel’s bill would have mandated Citizens offer windstorm coverage to all, including condo buildings and mobile homes.
The aim of the bill was to address Florida’s property insurance challenges, a concept that has faced opposition. For example, Citizens CEO Tim Cerio pushed back on a similar proposal last year, predicting a major increase in reinsurance costs. However, Cassel and others argued that the plan could save policyholders money, potentially leading to a reserve fund that would provide financial relief during hurricane seasons.
Cerio has also stated that while the proposed changes would be a “radical departure” from Citizens’ mission, he and his team will cooperate fully if the legislature chooses to pursue any form of legislation that relates to insurance coverage.
Cassel’s political shift, from Democratic to Republican, has potentially enhanced her influence on insurance matters, adding to her ability to advocate for legislation and facilitate discussions.
If the feasibility study is carried out, FSU’s Catastrophic Storm Risk Management Center may conduct it. The center has previously conducted studies relating to insurance, including one for Citizens Property Insurance in 2020. Cassel stated she is “working with the administration to figure out the next course of action for that legislation.”
