The Florida House has approved property insurance legislation that promises to reduce the exposure of the state’s backup hurricane insurance fund and gradually raise rates for policyholders insured in state-backed Citizens Property Insurance.
Lawmakers approved the proposal (HB 1495) on Friday by a 75-33 vote.
Under the House bill, Citizens’ rate increases would be limited to 10 percent on average statewide or 20 percent per individual policy.
The rate increases would cease once actuarially sound rates are achieved.
In addition, the legislation would begin a process of shoring up the state’s property reinsurer, Florida Hurricane Catastrophe Fund, and phase out about $12 billion in reinsurance it provides to private insurers.
The House bill is similar to one being considered in the Senate, although the Senate version (SB 1950) would allow Citizens to raise rates no more than 10 percent per year for any single policyholder.
Both bills allow that 10 percent of Citizens’ rate increase revenues must be used to fund mitigation grants for Citizens’ policyholders under the My Safe Florida Home Program.
The Senate vote could come early this week. The lesgislative session ends Friday, May 1.
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