Paul Renner Proposes Eliminating Florida's Property Insurance Tax, Expanding Catastrophe Fund

On the first day of the 2026 hurricane season, Florida gubernatorial candidate and former House Speaker Paul Renner unveiled a plan aimed at significantly lowering homeowners' insurance costs, proposing the complete elimination of the state's premium tax on residential property and an expansion of the state-backed reinsurance program. The proposal, announced June 4, targets what has been a persistent financial strain for Florida residents and businesses. According to Renner's campaign, the combined reforms could result in a 10% to 20% reduction in homeowners' insurance premiums, offering potential relief in one of the nation's most expensive insurance markets. The first major component of the plan is the elimination of the premium tax on residential property insurance policies. This tax is a direct cost passed on to policyholders, and its removal would, in theory, translate to immediate savings. The second, more complex component involves changes to the Florida Hurricane Catastrophe Fund (FHCF), commonly known as the Cat Fund. The Cat Fund acts as a state-run reinsurer, offering coverage to private insurance companies at rates generally lower than those available in the private global market. Renner's plan would adjust the fund's payment limits for claims handling expenses after a hurricane. According to the proposal, this change is designed to reduce insurers' reliance on more expensive private reinsurance, with the expectation that these cost savings would be passed on to consumers through lower rates and reduced pressure for annual rate increases. This proposal comes as the Cat Fund is in a relatively healthy financial state. An advisory council report approved on May 22, 2026, described the fund as being in a "strong position" heading into the hurricane season, according to reporting from POLITICO's E&E News. The fund is legally obligated to provide up to $17 billion in coverage. Its stability has been aided by a lack of major storms hitting the state since 2024 and a reduction in losses associated with previous hurricanes. However, the fund's health is critical for all Florida policyholders, not just those in coastal areas. If a major storm or series of storms depletes the Cat Fund's resources, the state has the authority to impose an emergency assessment on most insurance policies sold in the state, including auto insurance. This mechanism, which critics have dubbed a "hurricane tax," is designed to replenish the fund and ensure it can meet its obligations. Renner's plan to increase the fund's coverage obligations arrives in a market that has already seen signs of stabilization. According to a March 2026 brief from the Insurance Information Institute (Triple-I), Florida consumers have begun to see tangible benefits from sweeping legal system reforms passed in recent years. Those reforms were designed to curb excessive claim-related litigation, which had driven insurer insolvencies and market withdrawals. Data from Triple-I showed that in 2023, Florida accounted for over 72% of the nation's homeowners' claim-related lawsuits despite representing only 10% of U.S. homeowners' claims. The legislative changes, which limited one-way attorney fees and assignment-of-benefits practices, have been credited with increasing market competition and stabilizing premiums. For small and mid-sized businesses in Florida, the direct and indirect costs of property insurance are a significant operating expense. A double-digit percentage decrease in premiums could free up substantial capital for investment, hiring, or expansion. The stability of the insurance market also affects the overall business climate, influencing decisions on commercial real estate investment and development. While the prospect of a double-digit reduction in insurance premiums is welcome news for Florida business owners, the proposal fundamentally shifts risk from the global private reinsurance market to a state-managed fund. In our experience, such concentrations of risk can create unforeseen vulnerabilities. A single catastrophic hurricane season could deplete the Cat Fund, triggering the "hurricane tax"—a statewide assessment levied on nearly all insurance policies, including commercial auto and liability, to replenish the fund. This hidden liability can surprise businesses with unexpected costs that disrupt cash flow planning. Proactive financial risk management involves not just seeking lower upfront costs, but also understanding and planning for these contingent liabilities created by policy shifts. At C&S Finance Group LLC, we help clients build financial strategies that account for these complex variables. To assess your company's exposure to such regulatory and market changes, contact C&S Finance Group LLC at csfinancegroup.com. As the 2026 gubernatorial race intensifies, Renner's proposal will likely become a central topic of debate. Insurers, consumer advocates, and state financial regulators will be closely scrutinizing the plan's actuarial soundness and its potential long-term impact on market stability, especially as Florida navigates another hurricane season.