Florida Homeowners Insurance Crisis Spills Into 2008
The Florida 2007 Emergency Insurance Legislation did not solve the problem:
- The expected 24% average rate reductions are coming in at 12%.
- 31 Florida homeowner insurance companies who asked for rate increases, had their requests rejected.
- Florida insurance company executives are being invited to testify before a state Senate committee about why they are not cutting their rates.
- As we reported in Florida Homeowner Insurance Alert, the number of companies writing new business statewide since the 2007 legislation has declined from 42 to 36 companies. It is now harder than ever for Florida homeowners to find private insurance coverage. Consumer choice continues to decline.
- Thousands of Florida homeowner insurance policies are scheduled to be cancelled on non-renewed throughout 2008.
- Citizens Property Insurance Corporation now has hundreds of millions of dollars of its surplus tied up in downgraded securities at Florida's State Board of Administration (SBA). The SBA recently experienced a 1929 style run on its funds after disclosing that some of its portfolio was exposed to the sub-prime mortgage meltdown. It remains to be seen whether those investments will recover in time for the 2008 hurricane season in the event Citizens needs access to those funds.
- The My Safe Florida Home program continues to be producing more inspecting than home hardening - 63% of new subscribers to The Home Insurance Buyers Guide report not having hurricane shutters on their home.
As we begin 2008, Florida homeowners insurance is still out of control. But all of us as taxpayers and voters can make a difference during the year by staying involved and informed. It is very likely that the legislature will take further action on Florida homeowners insurance in the Spring.
Please take the time to stay informed and let your legislators know how you feel.
Recent News
Buyers Guide in the News
6/20/08 - Sun Sentinel - Are you still struggling to pay for insurance?
3/31/08 - St. Petersburg Times - Florida House bill would use Citizens' fund for insurer loans
3/10/08 - Palm Beach Post - Florida Homeowners Hardly Fans of Their Insurers
2/4/08 - Palm Beach Post - Website Aids Insurance Seekers
12/6/07 - Florida Today - Website Tackles Home Insurance