Capping coastal home insurance coverage at $1 million and providing grants for home fortification against hurricanes are among suggestions proposed for Citizens Insurance, Florida’s property insurer of last resort.
A task force that met Monday and Tuesday also 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 property deemed too high-risk by private carriers.
“I think the Legislature is very serious about reducing Citizens’ exposure,” said Insurance Commissioner Kevin McCarty, the task force’s chairman.
Cutting the more than 6,000 homes it insures for more than $1 million would drop Citizens’ exposure by $900 million, said Susanne Murphy, the insurer’s corporate counsel. 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 task force will meet again Feb. 27 in Tallahassee.
Topics Florida
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