With the 2016 Florida Session over, Florida lawmakers have missed their opportunity to address the misuse of assignment of benefits and to lay down insurance requirements for ridesharing companies in the region.
The assignment of benefits abuse issue led to alarmingly high costs of water damage claims in recent times. Bills introduced to address the issue were dropped February, but a “compromise” bill was introduced. The revisions to the bill included a provision that required notification to insurance companies after a contract is signed between a policyholder and repair contractor.
Insurers and their advocates warned that homeowners can expect higher rates if the abuse of assignment of benefits is not resolved. Counties in Miami-Dade, Broward and Palm Beach were hit the hardest by rate increases due to the issue.
“Given the latest data, rates in those counties would have to nearly triple to pay for non-wind related losses,” Citizens Property Insurance said in a statement. “Under Florida law, Citizens rate increases are limited to 10 percent a year.”
The Florida Office of Insurance Regulation revealed the results of its data call among homeowners’ insurers, and found that water losses have increased by 46% over five years, and insurers would have to raise their rates by at least 10% to keep up.
On the other hand, plans for more stringent insurance requirements for ridesharing companies in Florida are still up in the air. A House version of the bill which transport network company (TNC) Uber approved lacked the stricter requirements of the Senate version, which taxi companies supported.
While some industry experts and even insurance commissioner Kevin McCarty have approved the model, taxi companies have argued that the bill offers TNCs a competitive advantage in that they are not subjected to the same insurance requirements as taxi companies.
With the bill unable to pass, TNC regulations will be controlled at a county level.
