Adam Basford, Vice President of Governmental Affairs at Associated Industries of Florida, said that the state’s 2022 insurance reforms have stabilized the market for businesses and cautioned against reversing progress with new legislation. He made this statement during a public hearing.
“Florida businesses are seeing more insurers offering policies, more coverage options and even more competitive pricing,” said Basford, Representative. “We encourage you to give those reforms some time to work before we consider serious changes like the one we are today. This bill points us back in the direction of less options and a more unstable market. Florida should look for ways to entice insurance companies to come into the state and continue to expand.”
As reported by Reuters, Florida’s property insurance market continues to experience disruption despite the passage of HB 1551. This bill introduced new governance and disclosure requirements for condominiums but has added administrative burdens on associations without addressing core issues such as insurance affordability. Rising premiums, inflation, and ongoing litigation remain significant challenges in the market.
According to the Florida Office of Insurance Regulation, the average annual premium per policy for condominium association insurance increased from $71,963 in the second quarter of 2022 to $145,940 in the second quarter of 2024. This substantial rise in premiums has been attributed to factors including increased litigation and structural concerns following the Surfside condominium collapse in 2021. While legislative measures have been introduced to address these issues, the financial burden on condominium associations and unit owners remains considerable.
Data from early 2024 provided by the National Flood Insurance Program indicates that fewer than 40% of condominium units in Florida’s FEMA-designated Special Flood Hazard Areas have active flood insurance policies. This low coverage rate persists despite legislative efforts aimed at increasing transparency and insurance uptake among condominium associations and unit owners. The continued underinsurance in high-risk zones raises concerns about residents’ preparedness for natural disasters.
Basford is the Vice President of Governmental Affairs at Associated Industries of Florida (AIF), a position he has held since December 2021. Prior to this role, he spent 17 years at the Florida Farm Bureau Federation, serving as Director of Legislative Affairs from 2012 to 2021. Basford holds a master’s degree in agricultural communications from the University of Florida and a bachelor’s degree in organizational communications from the University of West Florida.
