Floridians scored a victory this session with nearly $1 billion set aside for insurance relief, including $715 million to reduce the burden of insurance assessments and $250 million to hurricane-proof homes which will help lower insurance premiums.

Since 2004, I have urged legislators to earmark surplus revenue collected during hurricane recovery to help homeowners deal with insurance assessments, hurricane repairs and hurricane preparation, and the Legislature has responded. 

We have collected millions in sales taxes during hurricane recovery and the fair thing to do was to give it back to Florida’s families to deal with insurance costs.  

Senate Bill 1980 directs $715 million be used to offset insurance assessments levied by Citizens Property Insurance Corporation for a deficit caused by losses during the 2005 hurricane season.  Under Florida law, the company’s deficit must be paid through assessments on all Florida homeowners' insurance policies.

The legislature also set aside $250 million to help Floridians strengthen their homes to withstand hurricane winds, bringing the total relief for insurance costs to nearly $1 billion.  The $250 million would be used to do free home inspections for homeowners and provide matching grants up to $10,000 for home improvements.

Even with this important victory, we must continue our quest for federal solutions to help strengthen our property insurance market and improve availability, including the creation of a national catastrophe fund as well as catastrophe savings accounts.

Federal and state reforms combined with insurance relief will help ensure a long-term victory for Florida’s homeowners.

GALLAGHER: POLICYHOLDERS TO RECEIVE 

MORE THAN $2 MILLION IN REFUNDS

Tom Gallagher, Florida’s chief financial officer, said that American Mercury and Mercury Insurance companies have agreed to refund more than $2 million to their policyholders in Florida. According to the state’s Office of Insurance Regulation, its examination of the two companies was initiated based on consumer complaints referred by the Department of Financial Services and found the companies improperly cancelled coverage and denied claims.

“Obtaining restitution for consumers should be our top priority when action is taken against an insurance company for improper practices,” said Gallagher, who oversees the Department of Financial Services. “We will continue to shed the light on companies that engage in an abusive pattern of denying claims or dropping policyholders.”

In addition to refunds, the Office of Insurance Regulation ordered the two companies to pay $1 million in fines and investigative costs. Its examination uncovered numerous violations, including canceling coverage when a claim is filed and improperly denying or avoiding payment on claims.

Gallagher said Floridians who need help with their insurance companies or financial entities should call the department’s helpline at 1-800-342-2762. More information is also available at www.MyFloridaCFO.com.

The Florida Legislature today passed HB 1567 which restricts the government taking of private property.  Following the bill’s passage Chief Financial Officer Tom Gallagher released the following statement:

“Last year’s decision allowing private property to be taken by government to fatten its tax base or for economic development was an outrage.  This bill provides a common sense check on the power of government and is great news for the property owners of our state.

“Within one day of the Kelo decision Speaker Bense responded and formed the Select Committee to Protect Private Property Rights.  I congratulate him and I thank Rep. Rubio for championing this legislation to increase the power of Florida property owners and limit the power of government.”