No Hurricanes in 5 Years -- but Insurance Rates Rise

Florida Insurance Commissioner Kevin McCarty says rates continue to climb because the state is still hurricane prone and non-hurricane losses have gone up 65 percent for insurance companies. McCarty says many of those losses come from sinkholes  Read the whole story here.

12/27/10 Update:  The increases have been announced.

More details on Florida's Insurance Rates going up

While Governor Crist hasn't YET signed it, details of the insurance regulation bill are available. Here are the highlights:

• Citizens Property Insurance can aise rates a maximum of 10 percent annually until its rates are actuarially sound.
• Increases rates 1 percent each year to recover the cost of extra payments to the Florida Hurricane Catastrophe Fund, required for rapid reserve build-up.
• Florida Hurricane Catastrophe Fund
• Reduces coverage sold by $2 billion over the next six years.
• Implements a rapid reserve build-up program over the next five years. Insurers will pay additional premiums each year.
• Allows small insurers to purchase additional coverage from the CAT Fund.
• Allows private insurers to pass on up to 10 percent of their reinsurance costs to policyholders through expedited rate filings.
• Prohibits insurers from raising rates and then filing the required paperwork with state regulators until Dec. 31, 2010.

Here's the full story from the Miami Herald.

I don't believe this news has fully reached the over 1 million Citizen's Insurance customers in the state as well as everyone else here that will face higher rates partly due to the hurricane activity in 2004-5 and to protect the state's emergency Hurricane Catastrophe Fund in the future.

Wait till Charlie signs the legislation and watch for the fireworks! This won't be good.

Higher Property Insurance Rates for Florida coming just in time for Hurricane Season

In an effort to shore up the state's Hurricane disaster fund, homeowners throughout the state may be facing higher property-insurance bills. The measure, which easily passed both State chambers, would increase rates for customers of the state-backed Citizens Property Insurance Corp. by 10 percent a year. Also, customers of private insurance companies likely will see rate hikes, though the amounts could vary.

The bill is sitting on Governor Charlie Crist's desk as the week begins.

Hurricane Season starts in less than 30 days.

Florida's Emergency Management Director headed for FEMA chief confirmation

Craig Fugate, President Obama’s nominee to head FEMA, sailed through his confirmation hearing Wednesday before the Senate Homeland Security and Governmental Affairs Committee and made strong assurances on Hurricane Katrina recovery and the future of the disaster response agency.

I'd say he's qualified:

As Florida’s emergency management chief since 2001, Fugate has responded to eight major hurricanes. A certified firefighter and paramedic, he also spent 10 years as a local emergency manager in Alachua County, Florida. He has managed the response to 11 federal disasters, 23 state emergencies and has overseen more than $4.5 billion in federal disaster assistance.

Good News?

Headlines this week in Florida were that due to the loosening of the credit markets, the State would have the ability to bond an additional $5 billion, if needed, giving us $8 billion for the Florida Hurricane Catastrophe Fund.

The fund was established after Hurricane Andrew in 1992, to back up insurers in the event of a particularly devastating hurricane, or a quick succession of smaller ones. It now has an exposure of more than $28 billion with less than $8 billion on hand to pay claims.

Here's the round up of news coverage (although most of it says the same thing)

Ironically, Governor Charlie Crist found out about this via telephone as his trip to the state capital in Tallahassee was delayed due to Tornado warnings near his home in St. Petersburg, FL.