The Biden Administration’s “Build Back Better” tax proposals will lead to a large property insurance cost increase for U.S. residents in the form of a new “hurricane tax.” If the “Build Back Better” plan is passed, the cost of property insurance will increase nationally between $10.8 billion and $20.3 billion per year. This data from a recent R Street Institute study also projects property insurance costs in Florida would increase between $864 million and $1.62 billion a year, which translates to approximately $300 more a year in property insurance costs for Florida homeowners.
The impacts of the “hurricane tax” have been decried for months by Florida business leaders and consumer advocates. Now, joining the chorus of voices against the “hurricane tax” are insurance leaders in Georgia and Mississippi.
In a recent op-ed by Georgia Insurance and Safety Fire Commissioner John F. King, he points out that this hurricane tax will affect those making less than $400,000 per year despite the President’s assurances that no one under that income level will be impacted. According to Commissioner King, the “hurricane tax” would increase total property insurance premiums in Georgia between $331 million and $623 million a year, which equates to an increase in $130 to $244 per family per year.
During an interview with Y’all Politics, Mississippi Insurance Commissioner Mike Chaney said property insurance costs in Mississippi would increase between $100 million and $160 million a year. Commissioner Chaney says this is $130 to $230 of additional cost to every Mississippi family, regardless of their income level. He encouraged all Mississippians to contact their federal delegation and ask them to vote against this plan.
Stronger Safer Florida is a nonpartisan coalition comprised of businesses, consumer and environmental groups from throughout Florida. This diverse membership seeks to protect consumers before, during, and after catastrophic events impact Florida.