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Business trends for 2006

Insurance

Plans for change to get close look

By HELEN HUNTLEY
Published January 8, 2006

Insurance is likely to be a headline grabber again this year with homeowners feeling the pain in their bank accounts and politicians groping for solutions to the crisis in property insurance.

In the wake of two devastating hurricane seasons, insurance carriers are raising rates and dumping policies. Homeowners who lose their coverage usually end up with the state's insurer of last resort, Citizens Property Insurance Corp., which is raising rates an average of 45 percent this year. Pasco County homeowners will take a particularly hard hit.

All property owners will be affected no matter which company provides their insurance coverage. A statewide special assessment to help cover Citizens' deficit will add $165 this year to a typical policy holder's $1,500 premium.

The Florida Legislature will be dealing with proposals to use state sales taxes to bail out Citizens and to cap windstorm coverage at $500,000, forcing owners of expensive homes to go elsewhere for supplemental coverage.

The Legislature also will be deciding whether to keep the state's system of no-fault auto insurance, which is set for repeal Oct. 1, 2007, unless re-enacted. Look for lawmakers to weigh in on personal injury protection, with proposals to reduce medical costs and attorney's fees and to increase penalties for insurance fraud.

[Last modified January 8, 2006, 11:23:52]