Several months ago, I predicted that Ian meant the end of the Florida “freedom project,” because it would either force the legislature to raise taxes for a massive insurance company bailout or impose tough new regulations on coastal development. I was wrong, because for once, I underestimated the cynicism of Florida Republicans. They have “solved” the insurance crisis by replacing insurance with the illusion of insurance.
What do I mean by that? Three things. First of all, the new legislation takes much stronger steps to prohibit Florida property owners from buying from the state-owned insurance company: Citizens. This is consistent with the GOP’s desire to avoid “socialism,” but private companies in Florida have a history of refusing to pay valid claims, and still going under. Second, the legislation is clearly designed to shift as much liability as possible from Citizens and the private companies to FEMA. Third, and most importantly, the legislation makes it much more difficult to file and successfully pursue a claim. The new attorney fee provision, in particular, will put desperate homeowners in a weaker position relative to the insurance companies, who will then refuse to pay claims and dare the owners to sue them. Most owners will be in no position to do so and will take whatever crumbs are thrown their way in lieu of the full compensation they deserve.
The idea here is that the private insurance companies will eventually charge less for the mere illusion of insurance, so the affordability crisis will be resolved without tax increases or new land use regulations. The problem is that the companies will be called out in the media on a regular basis for the unscrupulous tactics that the Florida Legislature is clearly encouraging (this is already happening), so the illusion won’t last. In any event, even the illusion of insurance costs lots of money after a huge hurricane, so the companies are still raising their rates. There will be no short-term relief even with the new “reform.”
Do you know who has figured this out? A man who knows a hustle when he sees one–Donald Trump! He is attacking DeSantis for encouraging insurance companies to rip off Floridians.
For once, good for him.