Florida legislative measures would allow insurance rates to rise

Posted by YiLin Zhu
Written by Beatrice E. Garcia

Lawmakers have begun work on two major property insurance bills that aim to fix current problems in Florida's insurance market. One certain result: higher rates for homeowners, especially those covered by Citizens Property Insurance, the state-run insurer.

A bill in the state House of Representatives would allow rates to rise no more than an average 20 percent a year. A similar bill in the Senate, where debate will continue Monday, allows for increases of no more than 10 percent a year for any homeowner.

Gov. Charlie Crist, who championed insurance rate declines in the past two years, has acknowledged that rates need to rise. Some lawmakers are grudgingly moving in that direction as well. After two hours of discussion on more than a dozen changes and revisions, the House bill moved forward Friday with approval from the Insurance, Business and Financial Affairs committee. Among the amendments shot down quickly was one from Rep. Richard Steinberg, D-Miami Beach, which would have Citizens freeze rates for one more year. Citizens' rates have been frozen since the start of 2007.

Outside of South Florida, where Citizens has about half of its 1,066,304 policies, there is little sympathy for the insurer's policyholders. David Daniel, director of government relations for the Florida Chamber of Commerce, in urging the committee to pass the insurance bill, reminded the House committee that Citizens does not cover the majority of Florida homeowners.

Click here to read more