In a recent article, it was reported that some homeowners might be allowed to buy only the property-insurance coverage they want and insurers would have easier access to the state Hurricane Catastrophe Fund, under broad recommendations from a state insurance committee appointed by Gov. Jeb Bush. This sounds too good to be true. The report continue stating that the recommendations which were released earlier this week came at a time when home and business owners are reeling from soaring insurance cost from the previous destructive hurricanes of 2004 & 2005.
This proposal is expected to serve as a sample for a special legislative session on insurance, should Bush choose to call one before the end of his term. The Property and Casualty Insurance Reform Committee, led by Lt. Gov. Toni Jennings, will meet in Tallahassee to finalize more than 50 recommendations. This certainly will be good news for Florida residents.
It was made clear that a special session would be call only if there is "general consensus" among lawmakers on ways to fix the state insurance market. Legislators would have to pass laws to enact many of the recommendations in the committee's report. However, insurance-industry officials and consumer advocates took issue with parts of the panel's report.
Some of the suggestions in the report are:
Allowing homeowners without mortgage payments to buy property policies that does not include windstorm coverage, or allowing those with home loans to insure their home or condominium unit only to the amount left on a mortgage.
Allowing home- or business owners choose higher deductibles for their policies.
Getting rid of high-risk areas for state-backed Citizens Property Insurance Corp., this would allow Citizens to issue complete homeowner policies for customers in those areas.
Letting insurance companies buy more reinsurance -- insurance that insurers buy -- from the state catastrophe fund that charges less than the private market. This would in effect reduce premiums for home- and business owners.
Allowing people to buy policies that don't include windstorm coverage or only covering the amount left on the mortgage is not one of the stronger proposals.
These suggestions are not welcome by everyone who disagree in home - or business owners to make such a big decision.
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