A candidate's support of flood damage exclusions for homeowners policies has become an issue in the Florida Democratic gubernatorial primary.

State Sen. Rod Smith, D-Alachua, has come under fire from his opponent U.S. Rep. Jim Davis, D-Tampa, who accused him of voting for a "loophole" to allow insurance companies to escape from covering flood damage. Mr. Smith's position has drawn words of support from an insurance lobbyist.

Sen. Smith backed a measure passed by the legislature countering a Florida court decision that required insurers to pay for all damages from a hurricane, including flood, when only a portion of it stems from a covered peril, such as wind.

Gary Landry, vice president of the Florida Insurance Council, defended Mr. Smith's vote.

Flood exclusion language is not a "loophole," he said, and "the legislature only reiterated what has been going on for decades, which is that storm surge is not covered under a wind policy."

For nearly 40 years homeowners' policies have excluded flood losses, which are covered by policies underwritten by the federal government, Mr. Landry noted.

"If that law is repealed, property-insurance writers will have to start charging for flood risk," Mr. Landry said.

Rep Davis doesn't see it that way. "This is just one example of the legislature standing on the side of the insurance companies while they charge record prices and reap record profits," Mr. Davis said on his Web site.

"As governor, Jim Davis will stand up to the insurance industry and be on the side of Florida's homeowners and business owners," he promised. He said he would seek to repeal the legislation if elected.

Mr. Smith countered that there was a reason the measure his opponent criticized passed the Senate 38 to 1.

"His proposal will send rates soaring even higher," Mr. Smith of the repeal measure in a statement. "He wants to force homeowners to buy flood insurance from a private insurer rather than a federally subsidized and discounted National Flood Insurance Program. If you think rates are high now, wait until private insurers start charging for flood risk."

According to recent polling reports, Mr. Davis is leading in the Democratic contest.

In the Republican primary race for governor, State Attorney General Charlie Crist is ahead in the polls in his contest with Florida Chief Financial Officer Thomas Gallagher, who was formerly state insurance commissioner. Neither has mentioned the insurance flood coverage issue.

Special Reports /

Flood Cover An Issue In Fla. Dem. Primary

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