Florida Homeowners Revolt Against Insurance Companies

Florida homeowners have started a grassroots initiative to fight for insurance reform in the state, banding together in a revolt against double and triple insurance rate increases. The revolt is causing the state’s insurance crisis to become an election issue.

Homeowner insurance rates have increased as much as double and tripled in some cases since the onslaught of hurricanes to hit the state over the past two years. The grassroots movement represents tens of thousands of owners of homes and condominiums.

Groups, including one in Destin, are sending off emails, holding meetings, sponsoring petition drives and hiring lobbyists to make the case for insurance reform.

Democrats in the Florida House are organizing a series of forums to tout a plan to have the state cover windstorm damage. Democrats contend the Republican-led Legislature sides with the insurance industry instead of Florida homeowners.

Democrats proposed closing Citizens Property Insurance, the state’s insurer of last resort, in the last legislative session and creating a statewide fund to provide homeowners with other windstorm insurance coverage.

The bill died and lawmakers passed a new law that raised rates for most homeowners.

In the mean time, many insurance companies have stopped writing policies all together in the state, and others have announced double-digit rate increases or plans to not renew policies. As a result, many homeowners only option for wind-storm coverage is Citizens.

Citizens was created in 2002. In the panhandle, which includes Destin and South Walton that means homes and businesses within a few miles of the coast and in some cases further inland must be insured by Citizens.

The Democratic-led contingent of lawmakers proposed the creation of a state windstorm pool that would cover the first $100,000 of losses after a deductible.

The state’s woes with insurance coverage are part of Florida’s legacy, starting back in the early 1990's after Hurricane Andrew hit Southern Florida. But until now the state legislature has never fully addressed the issue.

A Florida Democratic Party spokesman said the proposal would tempt "more private insurance into the market." But a Florida Republican party spokesman said the Democrats proposal "creates a government bureaucracy where there doesn't need to be one." He said Democrats are "playing up the issue and casting blame" as the November elections approach.

The Republican Party doesn't plan to introduce a bill to counter the Democrats, but the party will address the issue with a series of other bills.