Sunday, July 22, 2007

Florida Property Insurance Rates Rising Not Going Down

Sen. Bill Posey, the Rockledge Republican involved in negotiating the massive insurance reform, said lawmakers could move only so far so fast and that the ''culture of instant gratification'' made it difficult to meet expectations in the first place.
''You can't turn the Queen Mary around on a dime,'' Posey said. ``This is a big ship and it will take time.''

One emerging explanation for the higher rates is that new rules, expanding a state catastrophe fund to help insurers cover losses if a massive storm hits, may have backfired.
The expansion of the Hurricane Catastrophe Fund was the centerpiece of the reform plan to lower rates for Florida homeowners because it would allow insurers to buy cheaper backup insurance and pass the savings on to policyholders. The CAT Fund now can cover $28 billion in losses.


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