Florida legislators approve property insurance bill Insurance Consultant

Florida legislators approve property insurance bill

Written on April 7, 2011 – 7:50 am | by Sebastian Braim

A bill Florida homeowners fear would lead to higher homeowners insurance premiums has passed a Senate committee, and it will head to a vote before the floor soon.

Florida lawmakers voted in support of Senate Bill 408, a controversial piece of legislation that supporters say would attract private insurance companies to the state and encourage them to offer lower premiums. Many private homeowners insurance companies have lamented that they can’t compete with the low rates offered by the state-run Citizens Property Insurance Corporation. The legislation also seeks to reduce that agency’s dominating influence in the Florida homeowners insurance landscape, a model some lawmakers say is not sustainable.

However, critics say certain aspects of the bill – including one that would free insurance companies from having to offer comprehensive sinkhole damage – could leave consumers at stake for big losses, while requiring them to pay more for premiums. Lawmakers say the sinkhole provision is meant to cut down on fraudulent claims.

Sinkholes remain a big concern for homeowners throughout several major Florida counties, but state officials say they’re concerned a rise in sinkhole claims could be tied to misinterpreted incidents or issues where fraudsters attempt to report a sinkhole claim in order to cash in on their policy.

By: Bruce Berry
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