From the Editor

In the days just after the first pictures of the devastation wrought by Hurricane Katrina showed the overwhelming damage along the coast of the Gulf of Mexico–and especially in New Orleans–I asked a distinguished member of the House Insurance Committee what were the lessons Floridians should derive from the unimaginable extent of the destruction. After pausing to reflect on the question, he finally said that Florida residents needed to understand that there are limits to what the government can do.

It is a lesson that all too often comes too late. Hurricanes bring with them their own cycle of personal responses. At first people are just thankful to survive, then they point their finger at the government for not doing enough to help, and finally they aim their frustration at homeowners' insurers for not moving fast enough to settle claims. The one thing you never hear on television, or quoted in newspapers, is someone looking at their damaged house and saying, “Why didn't I do more to make my home safer and prevent so much damage?”

Changing that attitude and ushering in a new era of personal responsibility is perhaps the biggest challenge facing lawmakers, the industry, and those dedicated to educating homeowners on how they can reduce the damage to their homes. Unfortunately, however, with the Financial Services Commission and the legislature so focused on lowering rates, attacking insurers' profits, and trying to abolish so-call “pup” companies, little attention is paid to mitigation. Let me rephrase that: there is plenty said about mitigation, which has become the homeowners' insurance equivalent of mom, pop, and apple pie. But when it comes time to fund those mitigation programs and convince homeowners to take advantage of them, that is another story.

Take for instance the My Safe Florida Home Program, which was created as a pilot program during the 2006 legislative session. Lawmakers set aside $250 million to pay for home inspections and provide matching grants of up to 50 percent of the actual cost of the improvements, up to $5,000. So far, inspectors have examined 14,000 homes in 17 counties, with only 4,100 individuals applying for the grants totaling $47,000.

Chief Financial Officer Alex Sink recently announced that 11 new wind inspection firms have been selected so the Florida home program can go statewide. Each firm is being granted 60 days to ramp up with the goal of doing 1,000 inspections per week, which is somewhere in the neighborhood of 500,000 a year. But even with that level of inspections, it remains to be seen how many homeowners will be willing to take the step to open their checkbooks and do their part. And that is not to mention that even if all 500,000 homeowners were willing to step forward, it would be less than a drop in the bucket when compared to the total number of homes in the state.

All criticism aside, public policymakers have to start somewhere, and the home program is just one piece of a puzzle that includes the state's building code. But at some point, someone–read Governor Charlie Crist–is going to have to stop demonizing the industry and spread the message that we are all in this together and, as such, we must all carry our share of the burden.