DeSantis' proposed budget targets rising property insurance premiums

It allocates funds to cut premiums by 6%
DeSantis' proposed budget targets rising property insurance premiums
PROPERTY
By Mika Pangilinan
Dec 06, 2023

Florida governor Ron DeSantis has announced his proposed $114.4 billion budget for 2024, including a $409 million allocation aimed at easing property insurance premiums.

DeSantis’ proposal calls for a one-year exemption on taxes, fees, and assessments that would target homeowners with properties valued up to $750,000.

These exemptions translate to a 6% reduction for the average Florida homeowner, according to a report by the Orlando Sentinel, which cited information presented by the governor’s staff.

Florida has seen insurance premiums triple over the past five years, according to the Insurance Information Institute (Triple-I). Average annual payments have gone over $4,200, while the national average sits at $1,700.

State representative Anna Eskamani said the temporary relief is “just a drop in the bucket” compared to significant premium hikes experienced by many homeowners in recent years.

“We need serious reforms to provide robust savings to consumers,” she added.       

Aside from providing temporary relief, DeSantis has proposed a permanent insurance premium tax exemption for flood insurance policies, which would cost $22 million.

The budget also allocated $107 million in annual funding that would make the My Safe Florida Home Grant Program permanent, allowing homeowners to continue receiving support to make their properties less vulnerable to hurricane damage.

“While I have major concerns over many of the Governor’s stated priorities like cutting state jobs, slashing arts and culture funding, and spending on unnecessary litigation, I also see signs of hope in this budget suggestion on issues such as the ongoing insurance crisis,” said Senate Minority Lauren Book in a news release.

DeSantis’ 2024 budget proposal will still be reviewed by the Florida Legislature, which is convening into session on January 9.

“This is a budget that is, I think, respecting the taxpayers of this state,” DeSantis said in a Tuesday news conference. “We are living within our means. We are even paying back expenses. We're reducing the size of government. We're cutting taxes. We're eliminating more of our state debt. Yet, we also have record investment for education, record support for infrastructure, support for environmental restoration.”

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