1-15-07

Despite huge payouts for the 2004 and 2005 hurricane season, insurance companies managed to rake in strong profits. Suffering Floridians are calling for rate relief, and that's the single item on Tuesday's agenda.

"Those insurance companies are here to make a living, we're here to make a living, and the cost of living has changed. As legislators, we will look at a number of options. One, we will look at trying to roll back rates. Two, adjusting citizens’ insurance, which is the state run insurance, and tweaking the cat fund, which is the state’s reinsurance program."

As lawmakers return to the Capitol for the weeklong special session, they can expect full backing from Gov. Charlie Crist, who's shown support for an array of lawmakers’ proposals.

"There is an appetite to make a difference in Tallahassee. The governor has already removed the entire citizens insurance board from the state, so there is a real need for a shakeup."

Lawmakers have committed to passing legislation that will cut the rates, at least some.

"We're gonna make sure the average policyholder is getting up to a 25 percent discount in their policy rates."

But they want to avoid chasing away private insurance companies who help replenish the state's catastrophe fund. If the cat fund is adequate, that can keep insurance companies from raising rates following a disaster.

“The cat fund is at $5 billion with the four storms we have had that hit our state over the last several years. We exceeded over $7 billion in claims, so you'll see the Legislature fund some money to the cat fund to try and get it funded, and as policies sell, more money it goes back into it and that cuts the overall cost of doing business in the state."

Lawmakers are also scheduled to discuss a proposal that discounts rates for homeowners who've taken the initiative to "harden" their home.

"Put a grading scale in place. If you're got a new roof, impact windows, hurricane clips, you've got all these things in place and it's been documented that should adjust your rate accordingly."

Patronis doesn't expect results overnight, but he's optimistic homeowners will see some relief in the coming months. This is the first time lawmakers have met for a special insurance session in more than three years.