Florida Homeowner Insurance - Roundup For January 16
The Sun Sentinel writes that hope for Florida’s insurance woes lies in man named Ron Reagan. Looking like the government is going to be getting into the insurance business.
“I’m a conservative Republican and I believe in free enterprise and capitalism, just like President Reagan did,” Reagan said. “But [insurance costs] have gotten so out of control that we elected officials, regardless of our ideology, have to give rate relief, even if, sadly, that means more government involvement.”blockquote>
Measures discussed yesterday include making the state backed insurance company Citizen’s Property Insurance compete with private insurers.
Legislators clash, irate homeowners protest on opening day of session on insurance. The Florida House and Senate are in disagreement over how much risk the Florida taxpayers will incur.
Causing the early discord was a Senate plan that would place a $20 billion ceiling on what private insurance companies would have to pay policy holders to reimburse storm losses. Remaining claims would fall to Florida taxpayers, and would be paid for through a tax hike, cuts in the state budget, or a special fund.
Basically, the insurance companies will have their losses limited in exchange for lower rates. The taxpayers will bear the brunt of any catastrophic storms.
Legislature debates taxpayer risk. Are the citizens of Florida listening to these debates? If you live in the State of Florida, under these proposed bills you will be paying for catastrophic storm damage in the state, whether you personally experience it or not. Think people are screaming now? Wait until the taxes start to rise to cover this fund. But then again, most people are looking simply for rates to go down now, and could care less what might happen in the next few years.
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