Legislators Continue Quest for Homeowner’s Insurance Solution. Add your voice for free market choice.

The Florida Legislature is making progress in working toward solutions to Florida’s home owners insurance mess. Two promising bills are moving forward that would help return the free market to homeowner insurance. The following information is worthy of your consideration and, if you are so inclined, a note of encouragement to our legislative delegation would be most appropriate. We have included a link at the end of this post that allows easy email options to your legislators. (And thanks to all those who took the time to write last week. Senate Bill 2036 passed out of committee on a 6-2 vote.)

This bill has already passed out of the House Insurance, Business and Financial Affairs Committee with a unanimous vote. The companion bill in the Senate, SB 2036, also passed out of the Senate Banking and Insurance Committee last week on a 6-2 vote. Both bills have suddenly gained momentum and it is important that we continue to advocate for their passage. 

This bill creates and defines classes of “non-assessable” and ”assessable” residential property insurance policies. Non-assessable residential property insurance policies are exempted from state rate regulation except to make sure that insurers are charging enough to avoid insolvency. Non-assessable residential property insurance policies are from Citizens Property Insurance  Corporation (CPIC) assessments.
Insurers would be allowed to offer assessable or non-assessable policies and consumers could choose which they prefer.  Such policies would be required to contain a specific disclaimer describing the assessable and non-assessable characteristics of the policy, as well as the limited rate regulation to which the policy would be subjected.  If passed, the legislation would take effect July 1, 2009. House Bill 1171 is a companion bill to Senate Bill 2036 Sponsored by Senator Bennett. 

Florida’s current homeowner’s insurance system is broken. One major hurricane could bankrupt several private insurance companies, CPIC and the CAT Fund – devastating Florida’s already weakened economy. 

In addition to the real possibility that claims could go unpaid, the resulting threat every Florida family faces today is that we could be assessed as much as $1,400 a year – for several years – in “hidden hurricane taxes” to pay for the state’s hurricane losses that cannot be met through Citizens or the FHCF.

To contact your legislators, use this convenient link.