Thursday, February 15, 2007

Florida Homeowner's Insurance Update

97.8% of you heading this way are concerned about Florida's Property Insurance "crisis". Here's the latest update:

In January 2007 Florida legislators passed a bill that could lower property insurance premiums and bring other insurance relief to millions of property owners. Among the highlights of the 167-page bill are means to lower rates for homeowners by allowing owners to exclude windstorm and contents coverage, allowing owners to choose higher deductibles so that their premiums will be lower, removing the requirement that Citizen’s charge the highest premiums, and allowing non-homesteaded properties to be eligible for Citizen’s.
In order to further protect policyholders, the bill requires insurance companies to give 100 days notice of their intent to cancel a homeowner’s policy that would be effective during hurricane season, requires insurance companies to expedite payments of claims after storms, and prohibits excess profits by insurers.
The bill also makes an effort to expand the property insurance market in Florida by requiring insurance companies that write homeowners policies in other states and auto insurance policies in Florida, to write homeowners policies in Florida.
Insurance companies lobbied heavily against this bill, and there are fears of companies pulling out of Florida altogether. Just like the property tax issue, it’s a matter of “wait and see” before we can determine the effects of this legislation.

Read More:
Governor Christ Press Release

Insurance Companies Response