Multiperil Policies May Be in Citizens Future

Sen. Jeff Atwater, R-North Palm Beach, has introduced a plan to help pay for Citizens Property Insurance Corp. Atwater proposes to have Citizens offer multiperil policies for fire, theft and other coverage (which I'm not clear about.) This would help cover the shortfall if Citizens cuts their rates by 23 percent. House Speaker Marco Rubio, in the Florida House, has been a strong opponent. The Senate and House seemed deadlocked on this.

I like Atwater's plan for a few reasons. This would make Citizens competitive with private insurance companies. Competition tends to drive prices down in the long term. It also helps covers Citizens shortfall from not raising rates. Crist and a Republican legislature aren't about to raise taxes. At the moment, this is the best option.

The St. Petersburg Times (no link) has floated the of raising cigarette taxes. I haven't heard much of that. Perhaps Crist doesn't want to take on the tobacco and insurances industries on at the same time.

There is also another plan to give Citizens an additional $500 million of free coverage. Citizens would only have to pay it back after a major hurricane. Short answer: Citizens is on a giant credit card.