Will a state-backed reinsurance program help lower rates for Floridians?

TAMPA, Fla. (WFLA) — The cost of property insurance continues to increase in Florida. That's despite reforms that drastically limited lawsuits against insurance companies.

Many in the insurance industry say last year's reforms are working and there are fewer frivolous lawsuits. So, why aren't homeowners seeing any relief?

Reinsurance is insurance for insurance companies. It's a key part of our property insurance system.

Insurance companies say they've had to pay more for their insurance, up to 40% more, according to some brokers, and that's why your premium is not going to budge.

In the past two years, Beth Moran's property insurance premium has more than doubled.

"I felt so powerless really I did," said Beth.

Beth is one of hundreds calling 8 On Your Side about rising rates. Last year, Florida had two special sessions to address this crisis.

While the reforms seem to have stabilized the market, months later, homeowners have not seen any relief.

"I understand that consumers are probably extremely frustrated," said Paul Handerhan, the president of the Federal Association for Insurance Reform, which represents all stakeholders in the insurance industry.

Handerhan says reinsurance is hard to get and expensive. The cost, which is baked into your premium, trickles down to you.

Like others in the industry, Handerhan said he supports spending tax dollars to temporarily give reinsurance to insurance companies.

"The legislature could create a program to provide public reinsurance capacity," said Handerhan, "Any savings that they would inure through that program, they would have to pass those savings onto customers in their next rate filing."

"When was the last time your insurance premium went down? It doesn't," said David Murray, an attorney representing homeowners.

Murray said he would support helping insurers with their reinsurance, but under one condition—if for the first time, it's guaranteed rates would go down for homeowners too.

"We reduced mold coverage, then we instituted percentage deductibles, we then took away sinkhole coverage... then, we were told that the roofing industry was causing an increase in premiums, then we're told it's fraud that increases the premiums," said Murray. "Giving the insurance companies access to monies without a guaranteed premium for policyholders is a bad idea."

It's not the first time the insurance industry is asking for affordable reinsurance from the state.

In the past two years, lawmakers have had two state-backed reinsurance programs.

8 On Your Side will be watching what happens when the new session starts in January.