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Can the federal government fix property insurance?

Kimberly Leonard's must-read briefing on what's hot, crazy or shady about politics in the Sunshine State
Aug 09, 2024 View in browser
 
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By Kimberly Leonard and Kierra Frazier

CEDAR KEY, FLORIDA - AUGUST 05: High winds, rain and storm surge from Hurricane Debby inundate a neighborhood on August 05, 2024, in Cedar Key, Florida. Hurricane Debby brings rain storms and high winds along Florida’s Big Bend area.  (Photo by Joe Raedle/Getty Images)

High winds, rain and storm surge from Hurricane Debby inundate a neighborhood on August 05, 2024, in Cedar Key, Florida. | Joe Raedle/Getty Images

Good morning and happy Friday. 

Floridians are getting crushed under the high price of property insurance. Seniors are choosing to take on enormous risk by going without coverage. People are giving up dream homes to move to cheaper locations.

“This continues to be the No. 1 issue for Florida voters, whether they are a homeowner, a renter or whether they are looking to buy homes,” said Florida Democratic Party Chair Nikki Fried.

Hearing an earful from constituents, members of Congress and candidates for those offices have proposed some fixes — even as most of Congress hasn't shown much of an interest in the problem, and most rhetoric this election seems more focused on immigration, abortion and the economy.

This week Sen. Rick Scott (R-Fla.) proposed letting people deduct as much as $10,000 in homeowners insurance premiums from their taxes. Another bill, introduced with Rep. Byron Donalds (R-Fla.), would work similarly for flood insurance.

A bill from Rep. Jared Moskowitz (D-Fla.) aims to lower rates by reducing the amount of reinsurance, which is insurance for insurers. Senate Democratic candidate Debbie Mucarsel-Powell wants to introduce the Senate version if elected.

Democratic congressional candidate Whitney Fox, who’s in a five-way Democratic primary to challenge GOP Rep. Anna Paulina Luna, proposed creating a federal homeowners insurance policy similar to the federal flood insurance program. She’s calling it the Cutting Homeowners' Expenses and Providing Equitable Rates, or “CHEAPER” Act, and told Playbook it’s supposed to “more evenly spread risks across the country” so premiums will drop.

Fox in an interview acknowledged the issues that the national flood insurance program has, including massive debt. But she stressed any national program would need to be coupled with investments in home hardening and infrastructure, as well as a federal reinsurance program, given that insurers otherwise get it abroad.

“So many people have told me that this is an issue that needs to be addressed at a state level, but I'm not taking that as an answer,” Fox said. “There are measures we can take at a federal level, and I'm determined to find those solutions.”

The recent hurricane was a reminder of how precarious the whole situation is, and illustrated the growing threats that come with a warming climate. But talking to voters about possible fixes may be hard for them to latch on to, because of how complex the problem is.

“It is definitely something that is in the weeds … most people aren’t going to completely understand,” Fried acknowledged. Instead, they viscerally understand high costs or the threat of losing their homes, Fried said, adding that one of her party’s aims was to help voters connect the problems they face with Republican governance. (State lawmakers passed several measures to try to help, but it’ll take time to see if they worked, and a bad storm would set Florida way back.)

Congress has made only small moves, including a Senate hearing on the problem. Much of their focus has otherwise been on disaster relief reforms and funding. Last year the Senate Budget Committee launched an investigation into Citizens Property Insurance, which offers coverage to people who don’t have options in the private market, to check on its solvency. Florida Democrats held a press conference in June warning that state residents would be on the hook for higher taxes if a major hurricane bankrupts the program.

But there hasn’t been a House or Senate-commissioned study launched to examine the issues in the market. Jeff Brandes, a former GOP state senator who’s now the founder and president of the Florida Policy Project, said that should be the first step.

“There's very little leadership in this area of policy,” he said. “There needs to be some best practices identified and there needs to be some real conversations about what's ultimately going to bring down the cost of homeowners insurance for Floridians.”

WHERE’S RON? DeSantis is speaking at Erick Erickson's “The Gathering” at 11 a.m. in Atlanta. (Tune in.)

Have a tip, story, suggestion, birthday, anniversary, new job, or any other nugget in the campaign reporting that Playbook should look at? Get in touch at: kleonard@politico.com.

 

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... DATELINE TALLAHASSEE ...

Inter Miami forward Lionel Messi waves as he walks off the field after being honored for his 45 career trophies before an MLS soccer match against the Chicago Fire, Saturday, July 20, 2024, in Fort Lauderdale, Florida.

Inter Miami forward Lionel Messi waves as he walks off the field after being honored for his 45 career trophies before an MLS soccer match against the Chicago Fire, Saturday, July 20, 2024, in Fort Lauderdale, Florida. | Lynne Sladky/AP Photo

INFRASTRUCTURE GRANT — “DeSantis signs off on giving $8M to help Miami soccer stadium,” by POLITICO’s Gary Fineout. “Florida Gov. Ron DeSantis on Thursday awarded $8 million to help construct a new roadway into a sports and entertainment complex that will become the future home of Inter Miami CF, a Major League Soccer team whose roster includes soccer superstar Lionel Messi. While the amount of funding is relatively small, the decision by DeSantis to sign off on using taxpayer money on a project that would benefit a sports team represents a shift in thinking in Tallahassee. Florida in the past has awarded tens of millions to help renovate and build sports stadiums, but over the past 20 years resistance had built up to assisting wealthy team owners.”

NEW SECURITY FEATURE — “Florida to tear down century-old Victorian building as part of security boost for DeSantis,” reports POLITICO’s Gary Fineout. “The DeSantis administration said the push to finally acquire land near the mansion is not about creating a new park, but is an effort to create a bigger buffer around the mansion. As DeSantis’ national profile has grown, the state has added many new security features, including fencing off a small park that contains a 21-foot bronze sculpture that was installed when Lawton Chiles was governor.”

LEARNING AT HOME — “Homeschooling is booming in Florida. We asked three families why,” reports Tampa Bay Times’ Ian Hodgson. “From 2017 to 2022, Florida’s homeschool population grew nearly 70 times faster than the state’s public school enrollment and was among the highest rates in the nation, according to a Washington Post analysis. Tampa Bay is now a haven for homeschoolers. Nearly 11,000 homeschool students live in Hillsborough alone — more than any other school district in Florida. About another 9,000 live in Pasco and Pinellas, according to the most recent numbers from school districts.”

DEATH PENALTY — “Florida Death Row inmate says he shouldn't be executed because he was abused at school,” reports News Service of Florida’s Dara Kam. “Gov. Ron DeSantis last week signed a death warrant for Loran Cole to be executed by lethal injection Aug. 29 at Florida State Prison. Cole, 57, was convicted in the 1994 murder of a Florida State University student who went to the Ocala National Forest to camp with his sister. Cole would be the first inmate executed in Florida since October.”

FLORIDA RAIL WORKERS MAKE MOVES — The Transport Workers Union of America is working to organize on-board rail workers at Brightline Florida, with a majority of those workers filing for recognition Thursday before the National Mediation Board. Those workers are critical for the operations of the privately owned intercity passenger railroad, which provides a line from Orlando to Miami used by commuters and tourists.

PENINSULA AND BEYOND

RIGHTING WRONGS — “‘Not becoming of FAMU excellence’: FAMU grapples with failed donation fallout,” reports POLITICO’s Andrew Atterbury. “FAMU is preparing to enact several policy changes in light of the dubious $237 million donation, such as creating new guidelines for accepting gifts of private stock and separating two key positions that were being served by the same official that has since resigned. An outline of these regulations, which could have saved FAMU from accepting the failed gift, is expected to be introduced in September by interim President Timothy Beard, who has made it a ‘very high priority.’”

PARKLAND SETTLEMENT — “Parents of 3 students who died in Parkland massacre, survivor reach large settlement with shooter,” reports Associated Press’ Terry Spencer. “The parents of slain students Luke Hoyer, 15, Alaina Petty, 14, and Meadow Pollack, 18, each reached $50 million settlements with Nikolas Cruz while wounded student Maddy Wilford agreed to a $40 million settlement, according to recently filed court records.”

RESHAPING HIGHER ED — “At DeSantis’ urging, Miami’s institutions of higher learning look to influence Americas,” reports Miami Herald’s Gabriela Henriquez Stoikow. “Created over the last four years by the Florida Legislature and Gov. Ron DeSantis, the Adam Smith Center for Economic Freedom at Florida International University and the Institute for Freedom in the Americas at Miami Dade College are building the foundation of academic programs that focus on economic and individual freedom, leadership, democracy and capitalism. Current and former presidents are already teaching and giving lectures to students from around the globe, and there are plans to turn the Freedom Tower — an iconic symbol of Miami’s Cuban exile community — into a museum dedicated to the victims of communism.”

NOT JUST INSURANCE — “Condo HOA fees jumped 60 percent in South Florida in past 5 years. Why higher costs are ahead,” by the Miami Herald’s Rebecca San Juan. “South Florida condo owners, burdened by spiraling insurance, repair bills and a new state law, saw their association fees shoot up nearly 60% over the past five years — driving some to consider difficult financial decisions to make their next HOA payment. Miami-Dade County’s median monthly condo association fee of $900 from April through June this year is up more than 59 percent from the $567 fee over the same stretch in 2019, according to data from Redfin.”

...HURRICANE HOLE...

RAMPING UP — “Here’s what the next two weeks of hurricane season look like,” by the South Florida Sun Sentinel’s Bill Kearney. “Hurricane season just shifted gears. After a rather mellow July, August is shaping up to have ‘above normal’ hurricane activity, according to researchers at Colorado State University’s department of atmospheric science. The National Oceanic and Atmospheric Administration echoed CSU’s prediction Thursday in their updated 2024 hurricane season forecast, calling for an ‘extremely active’ remainder of the season, which runs from June 1 to November 30.”

CAMPAIGN MODE

Republican presidential nominee former President Donald Trump speaks to reporters during a news conference at his Mar-a-Lago estate Thursday, Aug. 8, 2024, in Palm Beach, Florida.

Republican presidential nominee former President Donald Trump speaks to reporters during a news conference at his Mar-a-Lago estate Thursday, Aug. 8, 2024, in Palm Beach, Florida. | Alex Brandon/AP Photo

TRUMP PUNTS ON AMENDMENT 4 — In a press conference Thursday at his Mar-a-Lago club, former President Donald Trump predicted that Florida's abortion amendment would wind up in a more "liberal" direction than might be anticipated. But he didn’t answer the question about how he’d vote on the ballot — yet. He instead promised to hold a press conference on the matter "sometime in the near future."

"So I don’t want to tell you now," he continued. "But Florida does have a vote coming up on that and I think probably the vote will go in a little more liberal way than people thought. But I’ll be announcing that at the appropriate time.” Trump similarly said he'd put out a statement on how he planned to vote on Amendment 3, which would legalize marijuana for adults over 21 for recreational use. The former president would often say while in office and after that he'd state his position on various issues and then put them off indefinitely. (Read more by POLITICO’s Kimberly Leonard.)

PRODUCT ROLLOUT — “Trulieve launches 'Yes On 3' weed products to promote Florida recreational marijuana,” reports C.A. Bridges of USA Today Network — Florida. “Cannabis company Trulieve launched a new Yes On 3 line of marijuana products to support the ballot initiative to legalize adult recreational marijuana use in Florida. The specialty products — pre-rolls, flower, gummies, and vape cartridges — feature one of two new cannabis strains, the company said: ‘Yo3,’ a collaboration between Trulieve and Sunshine Cannabis, and a Trulieve-specific strain, ‘Yon3,’ according to a release from the company.”

Correction: An item in yesterday's Playbook misstated the size of Sen. Rick Scott's (R-Fla.) recent ad buy. It is seven figures.

 

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ODDS, ENDS AND FLORIDA MEN

POSITIVE AT THE OLYMPICS — “Florida's Noah Lyles tested positive for COVID, needs wheelchair after 200m Olympics run,” by USA Today Network — Florida’s Dan Rorabaugh. “The Gainesville native won the bronze medal in what has historically been his best event. He received medical attention and collapsed into a wheelchair after the run. Letsile Tebogo of Botswana won the gold, and American Kenny Bednarek took the silver. Lyles has asthma, as he noted after winning the gold medal in the 100-meter dash Sunday to become the ‘World's Fastest Man.’”

BIRTHDAYS: State Rep. Keith Truenow Emmett Reed, CEO of Florida Health Care Association ... Mark Harper with the Daytona Beach News-Journal ... former state Rep. Sandy Murman … (Saturday) Joshua Karp of Liftoff Campaigns ... Former state Sen. Jeremy Ring … Bay News 9’s Phil Willette … (Sunday) CBS Miami’s Jim DeFede.

 

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Kimberly Leonard @leonardkl

 

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