Posted On: February 5, 2008, 6:16 pm CST

Posted By: Umpiire

Occasionally I have to say the same thing on one of these Florida nonsense debates... so here we go again.

Hurricanes happen in Florida, not Idaho. So there is no reason to rope Idaho into the problem... what would be the rate to charge, and who the heck would buy it?

There are huge values in Florida properties. They are beautiful, wonderful, places where folks will pay top dollar for the property, the beach, or the climate. So... buy the darned insurance at the rates that include hurricanes and get over yourself!

It's really quite simple - because hurricanes are seasonal, and because they don't make landfall every year, just change property policy requirements in Florida to mandate a term of 3 years. Do you youngsters remember when we had 3-year term policies? With the carrier on the policy for 3 years, there is little chance anyone could pretend they could "bet one term" and run off with a bunch of profits.

Then simply make the rates fit the exposure. The Department of Insurance could ask the Registrar of Contractors office to write a nice little pamphlet to citizens about how to build or renovate their structures to be more wind resistent. And carriers, ever after the best risks, will give discounts to those that follow those guidelines.

Florida merely needs to quit pretending that you can charge Idaho wind rates on Miami beach, folks. The owners of those big deal properties can indeed afford the proper rates, and they can also afford to retrofit for better wind mitigation. Florida business then just charges more for the use of those beautiful places... and because of the views, beaches, and climate, people will pay for it. If they don't... well... then an economy too weak to pay for itself becomes a victim of Darwin.