Capping coastal home insurance coverage at $1 million and providing grants for home fortification against hurricanes are among suggestions proposed for Citizens Insurance, the state’s property insurer of last resort.
A task force has recommended requiring a rapid cash buildup of the Hurricane Catastrophe Fund, which has been severely depleted.
The committee was established by the Legislature to make recommendations for running Citizens Property Insurance Corp., a state entity which insures properties deemed too high-risk by private carriers.
“I think the Florida Legislature is very serious about reducing Citizens’ exposure,” Insurance Com-missioner Kevin McCarty, task force chairman said.
Cutting the more than 6,000 homes it insures for more than $1 million would drop Citizens’ exposure by $900 million, Susanne Murphy, the insurer’s corporate counsel said. That could ultimately mean the company would be able cover its losses without assessing all Florida policyholders, who saw a 6.8 percent surcharge on premiums to cover Citizens’ $500 million shortfall in 2004.
The Citizens task force meets Feb. 27 in Tallahassee.
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