Governor calling special session on property insurance reform

Facing public pressure to rein in the state's spiking property insurance costs, Gov. Ron DeSantis announced Monday that he will call lawmakers back to Tallahassee in May to tackle the issue during a special legislative session.

DeSantis indicated that GOP leaders have agreed on a framework for the property insurance bill.

"What I said is on some of these issues that if we can get to a place where we can eventually punch it through then we would absolutely do a special session," the governor said during an event in Jacksonville. "And so those are issues like property insurance and trying to bring some sanity and stabilize and have a functioning market. I'm confident that we're gonna be able to get that done."

The governor said he's still working with legislative leaders on dates for the special session and will be signing a proclamation later this week making it official.

"I'm not confident that we'd be able to punch it through this week, but what I will be signing this week is a proclamation to set the dates for a special session in May," DeSantis said. "We're gonna work with the legislative leaders on those dates and it will have as the main focus the reform of the property insurance market."

Insurance costs

The governor has been under pressure from both Republicans and Democrats to do something about insurance costs. His announcement of a special session circumvents a push by Sen. Jeff Brandes, R-St. Petersburg, who has initiated a formal process to try to force a session.

"Florida's private property insurance market is in collapse," Brandes wrote in a letter to lawmakers seeking votes for a special session. "With hurricane season approaching June 1, it is imperative that we do everything within our power to ensure the people we represent can obtain insurance coverage at a reasonable price."

Property insurance companies have been pushing double-digit rate hikes as they complain about litigation costs and other issues. Three Florida insurers - St. Johns Insurance Co., Avatar Property & Casualty Insurance Co, and Gulfstream Property & Casualty Insurance - have failed recently, sending more customers into state-run Citizens Property Insurance.

Efforts to solve the problems have been controversial, though.

Republican leaders have pushed rate hikes for Citizens to make it less competitive with the private market, and taken steps to address claims of rampant fraud.

Critics worry that recent reforms made it harder to get legitimate claims paid, and such concerns could arise with any new legislative package.

Property insurance legislation

The House and Senate were at odds during the regular session about how to address the property-insurance problems, with the Senate trying to be more aggressive in bolstering private insurers.

As an example, the Senate proposed allowing new deductibles of up to 2 percent on roof-damage claims – an outgrowth of complaints by insurers that questionable, if not fraudulent, roof claims are driving up costs.

But the House rejected the idea, which would have led to increased out-of-pocket costs for homeowners who need to replace damaged roofs.

DeSantis said the special session may not be limited to property insurance legislation.

"We may also address other issues that came close to getting across the finish line," he said. "That maybe we can tweak and get there and once we have an agreement on that I'll be announcing that as an addition as well."

Strengthening condominium safety regulations after the building collapse in Surfside is another issue lawmakers failed to agree on before the end of the 60-day legislative session. There also has been talk of taking up a "constitutional carry" bill that would allow people to carry guns without a concealed weapon.

This is the second special session lawmakers will hold this year.

They are meeting this week to consider redistricting legislation after DeSantis vetoed the congressional redistricting bill put forward by GOP lawmakers.

The News Service of Florida contributed to this report. Follow Herald-Tribune Political Editor Zac Anderson on Twitter at @zacjanderson.

He can be reached at [email protected]