Florida home insurance premiums could be brought down
Florida homeowners could see a significant reduction in their insurance premiums if legislators adopt plans to create a natural-disaster insurance backstop.
The risks associated with extreme weather facing Florida property have forced insurers to raise premiums, especially on coastal regions, but lawmakers are starting to take note of residents' plight.
A bill being drafted by representatives would create a national fund to limit insurance companies' liability in the event of a disaster like Hurricane Katrina.
By safeguarding insurance companies against potentially huge costs, savings could filter down to the consumer making Florida property more affordable.
One of the representatives lobbying for creation of the fund, Robert Wexler, said: "We must mandate that the cost savings are passed down to the consumer. This can't be a windfall for the insurance companies."
Joseph Annotti, vice president of the Property Casualty Insurers Association of America said: "We do acknowledge the need for a public-private partnership to exist at the state and federal level to stabilize the market for certain types of risk.
"We hope to work with the Florida delegation to craft a bill that doesn't go too far to create a re-insurance bureaucracy but makes the federal government a firm financial backstop," the Sun-Sentinel reports him as saying.
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