Fla. Lawmakers Agree on Insurance Relief Plan; Bill Sent to Gov. Crist
Southeast News • January 23, 2007
Florida homeowners could see property insurance rates cut by as much as 40 percent under a plan finalized by lawmakers hoping to reverse hurricane-fueled increases many residents say have ...
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Subject: Fl rate reduction
Posted On: January 23, 2007, 1:35 pm CST
Posted By: puzzled
Comment:
It is puzzling to me as to why coastal homeowners in FL will see a 20% rate decrease in their windstorm premiums. Logic dictates that the closer a risk is to water the greater the chance of a loss caused by hurricane. Logic dictates that coastal homeowners should pay more for their coverage...you know, the greater the exposure to loss, the higher the premium should be. This is insurance 101.
Insurers must move in the direction of applying higher windstorm rates for risks close to the coastline and the rates should decrease as you gravitate away from the coast.
The other puzzling thing is that the lawmakers canceled a 56% Citizens rate hike and rolled back a recent 21% rate hike. This doesn't make sense. I thought the reason for the hikes in the first place was b/c Citizens was not charging enough to pay claims. What happens if a storm of Katrina caliber hits next season? Will there be enough for Citizens to pay all claims?
This is just mind boggling.
Subject: Fl rate reduction
Insurers must move in the direction of applying higher windstorm rates for risks close to the coastline and the rates should decrease as you gravitate away from the coast.
The other puzzling thing is that the lawmakers canceled a 56% Citizens rate hike and rolled back a recent 21% rate hike. This doesn't make sense. I thought the reason for the hikes in the first place was b/c Citizens was not charging enough to pay claims. What happens if a storm of Katrina caliber hits next season? Will there be enough for Citizens to pay all claims?
This is just mind boggling.