Earlier this year, Florida lawmakers vowed that they were finally taking the necessary steps toward fixing the state's battered property insurance market. In their 2011 legislative session they passed a comprehensive property insurance bill that was meant to help insurers deal with some of the cost drivers impacting the market.
Now, just a few months later, a number of politicians—including several who backed the new law—are upset with some of the provisions that are being carried out.
The catalyst for this backlash was the recent decision by Citizens Property Insurance Corp. to seek sweeping rate hikes associated with its sinkhole coverage. SB 408 made a series of changes involving sinkhole risks, one of which gave Citizens the ability to raise its sinkhole rates above the normal 10 percent rate increase the carrier is allowed to enact each year.
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