Florida homeowners should be provided with more property insurance options, a state legislative commission is recommending.
The Florida Property and Casualty Insurance Reform Committee released its recommendations, which include new options such as mandating insurers to offer coverage excluding wind; those including wind only; and policies offering exclusions of personal contents.
Sam Miller, executive director of the Florida Insurance Council, praised the report's "thoughtful, comprehensive recommendations that will reduce costs and benefit consumers over time."
Gov. Jeb Bush created the committee, chaired by Lt. Gov. Toni Jennings, to study Florida's insurance issues and make recommendations to the governor, the president of the Senate and the Speaker of the House of Representatives.
The report includes more than 50 recommendations pertaining to residential insurance market consumer issues, the state's commercial insurance market Property Casualty Joint Underwriting Association, and Florida building code changes.
It also includes steps to strengthen homes against hurricane damage, Florida Hurricane Catastrophe Fund changes, reinsurance market action, Citizens Property Insurance Corporation, market incentives/barriers and federal issues.
The committee also recommended authorization of a level of Florida Hurricane Catastrophe Fund coverage below the $5.3 billion attachment point for a limited duration, perhaps two storm seasons or a voluntary participation basis.
Mr. Miller said that while not all FIC members would support such an expansion, since it is inevitable, he is glad the panel took a relatively conservative approach in making it optional for insurers and having it apply for a limited time only.
The study also recommends the legislature consider a similar short term market enhancement on the top end of the CAT Fund above the $15 million cap, and also look into allowing commercial non-residential property insurers to access some level of CAT Fund coverage.
A "near market rate" premium should be charged for this coverage, the study suggests.
According to the report, residential and commercial insurance costs and availability are now the biggest issues facing the Florida Legislature and Florida's state and local leaders.
The report also urges the elimination of what it terms "the lengthy and costly process" for Citizens Property Insurance Corporation to seek rate increases with the Office of Insurance Regulation.
"The legislature should also eliminate the state's antiquated windstorm boundaries to allow Citizens to write a complete policy throughout the state," the report said.
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