As Florida residents brace for the 2026 hurricane seasonthe issue of soaring home insurance costs remains at the forefront of voters’ minds. GOP gubernatorial candidate and former Florida House Speaker Paul Renner has introduced an ambitious plan aimed at significantly reducing insurance premiums for Florida homeowners.
Renner’s proposal, unveiled on the first day of the 2026 hurricane seasonfocuses on three key areas: eliminating the homeowners’ insurance premium tax, reforming the Florida Hurricane Catastrophe Fundand addressing claims handling costs. These changes, if implemented, could lead to a 10% to 20% reduction in homeowners insurance premiums, providing much-needed relief to Florida consumers.
Eliminating the Homeowners’ Insurance Premium Tax
Renner’s plan calls for the elimination of the homeowners’ insurance premium tax, a move he believes is feasible given Florida’s substantial state budget of over $114 billion. By removing this tax and mandating that the savings be passed along to consumers, Renner aims to provide immediate relief to homeowners struggling with high insurance costs.
Reforming the Florida Hurricane Catastrophe Fund
The Florida Hurricane Catastrophe Fund plays a crucial role in the state’s insurance market, providing reinsurance to insurers in the event of a major hurricane. Renner’s proposal includes three major reforms to this fund:
Expanding Coverage for Smaller Hurricanes
Currently, the Florida Hurricane Catastrophe Fund only provides coverage for major hurricanes. Renner proposes expanding this coverage to include smaller hurricanes, a change that would allow Florida insurers to reduce their purchases of expensive reinsurance from London and Bermuda-based companies. This, in turn, would help lower overall insurance costs for consumers.
Removing the 25% Rapid Cash Build-Up Provision
Renner’s plan also calls for the removal of the 25% rapid cash build-up provision, a current statute that raises the Florida Hurricane Catastrophe Fund premiums insurers pay into the system by 25% above what is actuarially necessary. Renner refers to this as a ‘Hurricane Tax’arguing that its removal would directly benefit consumers by lowering their insurance premiums.
Covering Actual Claims Handling Costs
Under current law, the Florida Hurricane Catastrophe Fund’s payments for claims handling after a hurricane are limited. Renner proposes changing this to cover actual claims handling costs, a move that would not only increase the cost of private reinsurance but also potentially improve claim handling after a storm.
The Potential Impact of Renner’s Proposal
Renner argues that 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. The estimated benefit of implementing these reforms is a 10% to 20% reduction in homeowners insurance premiums for Florida’s consumers.
Renner’s proposal builds on his previous efforts to reform Florida’s insurance market. As Speaker of the House, he helped pass legislation combatting frivolous lawsuits and insurance fraud. He believes that his proposed additional reforms will further push rates lower and make Florida more affordable for all.
