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Daily Real Estate News | October 22, 2004
Fla.: Initiatives Against for Higher Insurance Rates
Spurred on by reports that insurers may seek substantial rate hikes after Florida's four hurricanes this fall, on October 7, Democrats in the state senate called for special legislative hearings to investigate the need for premium hikes in the aftermath of the hurricanes.
Up for discussion will be legislation that gives consumers a larger role in the insurance rate-setting process as well as the right to binding arbitration in cases of property claim disputes. A "loyalty provision" could also be created, which would ban insurers from canceling policies held by homeowners who have gone five years without a claim. Separately from the Senators' request, Governor Jeb Bush is also expected to call a special legislative session in December to deal with hurricane issues, including homeowners insurance.
According to the Insurance Information Institute, insurance payments from the four storms combined are expected to top $23 billion, surpassing the previous record of $15.5 billion set in 1992 by Hurricane Andrew. The group says insurance companies will pay over 2 million claims to customers whose property was damaged or destroyed by one of the four hurricanes; almost triple the 700,000 claims from Hurricane Andrew in 1992.
The Florida Association of REALTORS is monitoring the issue of higher insurance rates closely, says John Sebree, FAR's vice president for public policy. Sebree attended a leadership symposium in early October, meeting with executive officers from local boards statewide to discuss insurance rates and other hurricane-related issues such as building codes.
By Bridget McCrea for REALTOR Magazine Online
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