Renner Wants to Drop Premium Taxes, Expand Florida Cat Fund Coverage

Florida gubernatorial candidate Paul Renner, a former speaker of the Florida House, wants to eliminate the premium tax on residential property, part of his plan to reduce homeowners’ insurance costs.

The plan, which also includes tweaks to the Florida Hurricane Catastrophe Fund, could cut HO premiums by as much as 20% if insurer savings are passed on to consumers, Renner said this week.

“When insurers’ costs decline, they must adjust their rates, resulting in lower insurance premiums, reduced pressure for annual rate increases, and a more stable insurance market,” Renner’s campaign said in a statement.

Renner’s plan would likely meet with some support but also opposition from some sectors. Florida Cat Fund leadership has steadfastly opposed changes to the state-backed reinsurance program. And local governments and public employees, already at risk of losing revenue if a property tax reduction constitutional amendment is approved by voters, may rally against proposed cuts.

Renner’s campaign did not say how much elimination of the premium tax would cost Florida state and local governments, but he noted in a news release that “we can afford” to repeal the tax. Part of the revenue from premium taxes goes to help fund the Florida Fire Marshal and to fund firefighters’ and municipal police officers retirement trust funds, according to the state Department of Revenue. It’s unclear how that funding would be replaced under Renner’s plan.

For the Cat Fund, Renner’s plan would require the fund to provide coverage for smaller hurricanes, presumably by lowering the retention level, or insurer deductible, on the fund’s reinsurance offerings.

He also would have the Cat Fund remove the 25% rapid cash buildup provision, which requires insurers to pay more than is actuarially called for. His plan also would require the Fund to cover actual claims costs, or loss adjustment expenses after a hurricane, raising payouts to insurance carriers.

Renner is among a dozen Republican candidates and just as many Democrats running for governor this year as Gov. Ron DeSantis’ term comes to an end. The Republican frontrunner, according to news reports, is U.S. Rep. Byron Donalds. He, too, has said he will work “to solve the property insurance crisis” and lower housing costs.

Donalds has called for more transparency and an insurance company scorecard, which he said would encourage competition. He also has pushed for federal tax breaks for flood insurance purchases, along with “modest changes” to the Cat Fund, according to news reports.

The party primary vote in Florida is set for Aug. 18.

Topics Florida