Monday, June 13, 2011

Here Come the Property Insurance Hikes

Gov. Rick Scott said these word when he signed SB 408.

“A healthy, stable and competitive private insurance market is critical to the success of Florida, given the hazards we face. I commend the Florida Legislature, especially Sen. Richter and Rep. Wood, for bringing this important legislation forward.”

The question is how stable is Florida's economy going to be after insurance companies raise property insurance by 70 percent?

More than half a million Florida homeowners could see their home insurance rates rise in the coming year following a wave of rate-increase requests from insurers.

In little more than a month's time, more than a dozen insurers have asked state regulators to approve new rates that will force some customers to pay 70 percent more to insure their homes.

And despite five years with no hurricanes, more increases are expected, affecting not only coastal communities, but also homeowners in inland areas such as Orlando.

To be fair: the these possible property insurance increases are not related to Scott signing SB 408. There will be rate increases in the upcoming months that will be because of SB 408.

How does Scott expect to bring businesses to a state where people cannot afford a home?

How will Scott draw enough tax revenue to fund Florida if homeowners are fleeing the state?

How does Scott plan to improve housing sales when people can't afford the property taxes? Okaloosa County has been decimated by foreclosures. All State has requested a 75 percent rate increase for Okaloosa. Do not kid yourself into thinking that property insurance rates aren't part of the reason for foreclosures.

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