Senate Banking, Insurance Committee Hears Fla. Insurance Perspectives

The Senate Banking and Insurance Committee heard state insurance regulators and insurance industry perspectives on eliminating hurricane deductibles and reforming the state’s Hurricane Catastrophe Fund during preliminary discussions leading up a week-long special legislative session tentatively planned Dec. 13 in Tallahassee.

The hurricane season ended Tuesday, with estimates that multiple hurricane deductibles cost homeowners at least $54 million. There is a long list of problems that need to be addressed before the next hurricane season starts in June.

State Insurance Commissioner Kevin McCarty said the industry estimates that 106,000 homeowners were hit at least twice this season, some three times, some even four times. Multiple deductibles emerged as a problem when hurricanes Charley, Ivan, Frances and Jeanne crisscrossed the Sunshine State. The law allows insurers to charge homeowners a deductible per property damage claim, typically 2 percent of the insured value of the home.

Many hurricane-related problems will have to wait until the regular legislative sessions in March. Rudy Garcia, R-Hialeah, committee chairman said that many issues must be addressed now and cannot wait until the regular legislative session.

Fixing Citizens Property Insurance Corp., the state’s homeowner insurer of last resort, is one issues likely to wait until March. Citizens is growing rapidly due to the demand for housing.

Gov. Jeb Bush and Chief Financial Officer Tom Gallagher want to change the system so that homeowners will pay only one deductible for storm damage during an entire hurricane season.

Legislators are also expected to consider compensating homeowners $54.5 million for multiple deductibles they paid this year, which would have to come either from the catastrophe fund or general revenue fund.

Topics Catastrophe Hurricane Homeowners Politics