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Sen. Storms addresses rising property insurance

By ANDREW MEACHAM
Published December 22, 2006

One of the biggest issues facing freshman state Sen. Ronda Storms is the property insurance crisis.

Storms met with Plant City residents Monday at the Bealsville Recreation Center, the first of three insurance forums in Hillsborough County.

She told a group of 30 about the findings of an insurance reform committee appointed by Gov. Jeb Bush and released in November.

The meeting advances a special legislative session on insurance in January called for by Bush and his successor, Charlie Crist.

Lawmakers will explore stemming the double- and triple-digit rate increases of recent years.

Storms promised to do her best to lower rates of Citizens Property Insurance Corp., the state's insurer of last resort. She would start by eliminating the requirement that Citizens charge a higher rate than any private insurance company, a policy she said goes against free-market principles.

Intended for people who cannot get coverage elsewhere, Citizens is close to becoming the state's largest residential insurer. But broker commissions, hidden surcharges and unnecessary payouts keep the state-run company from being competitive, Storms said.

"We're saying that there is a crisis, and my question is: What part of this crisis are we creating?"

Storms said she would work to relax restrictions on the kinds of policies insurance companies can write, allowing for higher deductibles and the option to forego certain coverage, such as wind damage.

Storms also endorsed the state committee's call for clear guidelines on how residents can make homes less vulnerable to storms and receive lower rates.

Many in the audience grumbled when Storms told them about a mandatory 56 percent increase in Citizens policies scheduled to take effect in 2007. A bill proposed by the governor aims to halt that increase.

Henry Davis, president of the nonprofit organization Bealsville Inc., saw his homeowner's insurance jump from $800 in 2004 to $1,100 in 2005 after his insurer was bought out by another company. His policy for 2006 more than doubled, to $2,400.

"We didn't have any disaster, but the rates went up," said Davis, 65. "What is the state of Florida saying to me?"

Dave and Deborah Chandler of Brandon have seen their homeowner's policy triple in two years, from about $600 in 2004 to more than $1,800 in 2006. Their property taxes tripled during that time, to $2,000.

"Our wages are going up 3 to 4 percent," said Dave Chandler, 46, who works for a software company. "I don't need to be a rich man, but it would be nice not to have to give every dime I make to property tax and insurance."

Andrew Meacham can be reached at 661-2431 or ameacham@sptimes.com.

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[Last modified December 21, 2006, 07:51:04]