May 10, 2006
Homeowners insurance bill cannot halt rising rates
In Florida, you just cannot escape the rising property insurance rates. Despite Florida lawmakers doing everything they could to better the condition of the debt-ridden state insurance fund, things seem to have gotten worse. They even offered incentives to revive the private insurance market and attempt to ease rising premium costs, but to no avail. So why haven’t the lawmakers been able to bring the situation under control?
The main reasons for the rise are the frequency of the hurricanes and the rising costs of construction. Add to this the over $2 billion in deficits in Citizens Property Insurance, the state-run insurer of last resort. This has only added to insurance costs across the state since all property policyholders are assessed to pay off the debt. Theledger.com reports:
In Miami Beach, Rep. Dan Gelber, a Democrat, now pays $9,242 for his Citizens coverage for what he says is a relatively modest home. He will pay an additional $4,242 representing a 45 percent premium rate that Citizens is now seeking. He also has to pay more than $2,300 in assessments to cover Citizen deficits that have occurred over the last two years -- the result of eight hurricanes hitting the state in that period.
Read more: Homeowners Insurance Bill Won't Prevent a Rise in Rates
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