Florida property insurance law causes controversy in insurance industry
Florida Gov. Charlie Crist’s decision to veto the SB 2044 Comprehensive Property Insurance Act has caused serious controversy after homeowners, insurance companies, executives and even Florida Insurance Commissioner Kevin McCarthy urged him to sign. Despite recommendations from supporters of the bill, Gov. Crist, who left the Republican Party to serve as a freelancer in the U.S. Senate, expressed concern about a possible increase in Florida housing premiums that could have resulted from the bill’s passage. In his veto message, Gov. Crist said, “I am very concerned about the expansion of the current accelerated application process for insurance companies, which makes it easier to raise premiums for Florida residents.”
While the bill was actually aimed at raising insurance rates for homeowners, supporters of the bill argue that higher rates and reduced reimbursement costs, entailing the law, were necessary to avoid the risks associated with the huge financial costs associated with the 2010 Atlantic hurricane season and future stability. to think about it. The home insurance market in Florida. For example, according to the American Association of Accident Insurers (PCI), “without the bill, we will continue to see the huge and growing financial risk that Florida residents will face during the next storm.” Others, like current Florida Senate Speaker Jeff Atwater, have taken a more personal approach to expressing their outrage at Gov. Christie’s actions: promoting his own political career,” Senator Atwater said.
Most of the reasons why Florida’s housing insurance industry fully supports the bill stems from the recent price hikes that real estate insurers are suffering from. These costs are mainly related to the increase in non-disaster and soil failure claims, as well as claims for Hurricane Wilma, for which agencies are currently resuming operations. Among the industry representatives disappointed by Gov. Krist’s veto is the Association of Insurance Companies and Consultants of Florida property and accident insurance, which said that SB 2044 would make Florida home insurance more affordable and affordable for consumers by reducing the number of claims. and fraud. The group released a statement saying: “Unfortunately, critics wrongly presented it as a bill that would raise tariffs without regulatory oversight. There is nothing further from the truth. Violating this bill would ultimately undermine all insurers because of the continuing increase in losses. which leads to lower availability and higher prices. “
Despite the insurance industry’s insistence, Gov. Crist found the bill more harmful than useful, explaining that “in these difficult economic times, Florida consumers should not worry about further increases in premiums.”