Flood Insurance Alternative

Almost four of every ten flood insurance policies sold in the United States are sold here in Florida, but when it comes to collecting on damages, the state is losing out.

State Insurance Commissioner Kevin McCarty says, "For every dollar we put in premiums, we only get a quarter of that back in claims pay."

Floridians have paid at least 12 billion dollars to cover people's losses in other states. Now as policy holders here are being hit with double digit increases mandated by the Federal Government, State Senators say it makes sense for a state that already offers wind insurance to offer flood insurance.

Sen. David Simmons says, "I think this is something we got to look at. We can't leave these individuals without any kind of insurance."

Lawmakers first choice is to entice private insurers to offer flood.

Florida Realtors say covering flood could be a money maker.

John Sebree of the Florida Realtors Assn. says, "Of the top ten events, only one of those was a Florida event and it was Hurricane Ivan. So the major flood events in the United States are all outside of Florida with the exception of one."

When asked, Governor Rick Scott deflected the question.

Governor Rick Scott says, "Here's what I'm frustrated with, the person that signed the bill that it looks like it's going to dramatically increase flood insurance for many persons all around the state, he needs to put a pause button on that bill."

But if the federal government ignores pleas to stop the dramatic increases, Florida could be in the Flood Insurance business by spring or summer.

Based on previous losses, state run flood insurance policy could dramatically lower premiums while still remaining financially sound.