Florida Panel Sets Hurricane Insurance Proposals
NU Online News Service, Feb. 16, 4:06 p.m. EST?Florida's special joint legislative committee examining hurricane issues released a report today that calls in part for home insurers to offer a range of policy coverage deductible amounts, in addition to those currently offered.[@@]
The 23-page report of the Joint Select Committee on Hurricane Insurance suggests adding 1, 3, 7, and 10 percent of policy limits deductibles as options for carriers, in addition to the current choices of 2 and 5 percent. It also has recommendations on issues such as expanding the consumer advocate's office and making it more difficult for insurers to drop policyholders who had no claims for five years.
Other panel recommendations include displaying on policies the dollar value of hurricane deductibles and setting a rule to impose a "reasonable range" of construction costs following natural disasters.
The committee, which was formed on Jan. 5 and held five hearings since that time, is due to meet tomorrow afternoon to review the preliminary report and consider the recommendations.
For deductibles, the recommendation adds that since requiring insurers to offer lower deductibles may have a negative effect on the financial capacity of insurers to write policies, the Legislature should consider linking the requirement to other means for increasing the capacity of insurers to write policies, such as lowering the retention for reinsurers to be reimbursed by the Florida Hurricane Catastrophe Fund.
Earlier this week, the Florida Office of Insurance Regulation requested that state carriers refrain from seeking homeowners rate increases or implementing rate increases already approved until the Legislature can finish working on the issue of hurricane insurance.
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