Senate caps Citizens hike at 5 percent, Crist smiles
by Michael C. Bender | April 28th, 2009
The Florida Senate this morning approved an average increase of 5 percent for Citizens Property Insurance premiums, setting up a showdown with the House, where a proposal would let rates jump 20 percent.
The Senate bill (SB 1950) was approved 34-2. South Florida Sens. Eleanor Sobel, D-Hollywood, and Rudy Garcia, R-Hialeah, voted against it.
The bill was significantly amended Monday by Sen. Mike Fasano, R-New Port Richey, to cut the cap on rate increases in half. Customers of the state-run insurer have not had a rate increase in three years.
“God bless him,” Gov. Charlie Crist said of Fasano this morning. “Obviously, when you’re in a tough economy, if there is less of an increase, that’s better for the people.”
In a debate on Monday, Fasano said Citizens’ customers could not handle a 10 percent increase.
“Have you spoken to any of your constituents lately? Maybe an email? Maybe a phone call?” Fasano said.
Some lawmakers said the 5 percent cap put them in better position to negotiate with the House, which is considering a bill that could see individual bills go up as much as 20 percent. Some in the Senate said the hope is that they will meet somewhere in the middle, according to the News Service of Florida.
Tags: Citizens, Property Insurance
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April 28th, 2009 at 1:57 pm
Where have all the funds gone for the past few years we HAVE NOT had storms? Where is the foresight to create a cushion from those funds? A cushion that would prevent the need for rake hikes. Where has the $$$ we’ve already paid out in insurance premiums go? I think we need to see the actual accounting figures for these funds & payments & how they are distributed during hurricane seasons with no activity.
Florida has already become a state where more people are leaving than moving here. That means lost business income & state tax revenue. Raising rates will only keep more people & businesses from moving to Florida, while forcing new & existing homes to look less & less attractive to home buyers.
April 29th, 2009 at 1:54 am
Rate hikes? Yikes! This year brought with it unemployment for us — how do they think we are going to pay any percentage over the crazy premiums we are already paying?! Please think about your customers and their families!