Florida residents, we need to contact our State Representatives and Senators ASAP as we are getting blown-off on windstorm insurance by the screw-ups in Tallahassee! Monroe County state representative Ron Saunders just lost on several amendments (along with you and the rest of Florida property owners) as the Florida House of Representatives voted along party lines rejecting two amendments he proposed that would have helped people with wind storm policies:
The first amendment would have capped increases in Citizens windstorm rates to no more than 5% per policy until an "actuarially sound" rate is reached; the original bill (HB1495) included a 10% increase which, when compounded, would essentially result in a nearly 50% increase within 4 years. The second amendment would have held assessments to 15% per account. HB1495 increases these assessments to 25% per account.
Florida Senate Bill 1950 includes some provisions which may be good for Florida's consumers, and some which will be bad.
We should support Senator Fasano's helpful amendment to implement a "glide path" that does not exceed 5% annually per policy for these reasons:
Because this is a compounding increase, the proposed 10% increase will equate to over 45% in just four years, again making wind insurance unaffordable.
There is no solid definition yet of "actuarially sound" rates which are the goal or the target towards which the glide path is heading. Current insurance models do not accurately reflect local building codes or the distinction between damage from water vs. wind, thus there is not as yet an adequate definition or agreement about what an "actuarially sound" rate may be. So, without agreement or definition of the target, the current legislation is an open-ended opportunity for increases in excess of inflation for an indeterminate future. At least by limiting the increase to 5%, we will have time to incorporate these factors (building strength, wind vs. water) into the models and develop consensus on actuarial soundness before bankrupting consumers.
At the 5% annual increase, the potential assessments in the case of a 100-year event would be reduced by 40% within about 5 years.
On the other hand, the property owners cannot support Senator Fasano's terrible measure to eliminate all coastal wind policies from Citizens Property Insurance Corporation, simply because there is no viable alternative for many homeowners along the coast. At this point, windstorm insurance is required by most banks and lenders for anyone with a mortgage, this provision could stop any further recovery in our ailing real estate market and state economy. If a property owner can’t get windstorm insurance, then it will be just another excuse to withhold credit by the bailed-out lenders.
To contact the senators:
Florida Senate
E-Mail Addresses
atwater.jeff.web@flsenate.gov
fasano.mike.web@flsenate.gov
diazdelaportilla.alex.web@flsenate.gov
lawson.al.web@flsenate.gov
richter.garrett.web@flsenate.gov
smith.chris.web@flsenate.gov
alexander.jd.web@flsenate.gov
bennett.mike.web@flsenate.gov
ring.jeremy.web@flsenate.gov
storms.ronda.web@flsenate.gov
villalobos.alex.web@flsenate.gov
baker.carey.web@flsenate.gov
aronberg.dave.web@flsenate.gov
dean.charlie.web@flsenate.gov
oelrich.steve.web@flsenate.gov
deutch.ted.web@flsenate.gov
altman.thad.web@flsenate.gov
crist.victor.web@flsenate.gov
gaetz.don.web@flsenate.gov
garcia.rudy.web@flsenate.gov
gelber.dan.web@flsenate.gov
haridopolos.mike.web@flsenate.gov
hill.tony.web@flsenate.gov
justice.charlie.web@flsenate.gov
lynn.evelyn.web@flsenate.gov
peaden.durell.web@flsenate.gov
pruitt.ken.web@flsenate.gov
rich.nan.web@flsenate.gov
siplin.gary.web@flsenate.gov
wilson.frederica.web@flsenate.gov
wise.stephen.web@flsenate.gov
bullard.larcenia.web@flsenate.gov
constantine.lee.web@flsenate.gov
detert.nancy.web@flsenate.gov
dockery.paula.web@flsenate.gov
garcia.rudy.web@flsenate.gov
gardiner.andy.web@flsenate.gov
jones.dennis.web@flsenate.gov
joyner.arthenia.web@flsenate.gov
king.jim.web@flsenate.gov
sobel.eleanor.web@flsenate.gov
A special thanks to FIRM for the timely update. They are a 501c(6) corporation entirely financed by donations and entirely operated by volunteers. To learn about this citizen’s group go to www.fairinsuranceratesinmonroe.com/
2 comments:
Or better yet. Quit building in risky locations and asking the rest of us, that do not live on the coast, to subsidize your low cost insurance. It costs bucks to insure million dollar homes, get over it.
Dear Anonymous:
If I lived in a million home, it would be nice. However, please keep in mind that YOU can be hit by hurricanes (or tornado's) where ever you live, if you live in Florida (they even happen to people living in those little non-million dollar homes.)
By the way, if you happen to live up in the Karst Topography area of the state, I would be equally as overjoyed if I didn't have to subsidize your sinkhole coverage on my homeowners insurance, which I do. Get over being a knucklehead about hurricane coverage and support something for the betterment of your community and state neighbors.
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