Property Insurance

Deregulating Florida property insurance rate still at issue

(JACKSONVILLE) - Supporters of legislation allowing companies to offer property insurance with deregulated rates said Thursday they were undeterred by a deal announced a day earlier that would keep State Farm Florida in the Florida market.

“This is a piece of the answer, but it’s still not the whole answer,” said Rep. Bill Proctor, R-St. Augustine, who is sponsoring the House version of a bill that would allow companies to set their own rates.

State Farm reached a settlement Wednesday with the Office of Insurance Regulation to increase rates 14.8 percent and drop 125,000 of more than 800,000 residential property insurance policies.

A bill last spring, vetoed by Gov. Charlie Crist, would have allowed companies with large surpluses to offer the deregulated plans. The new bill would allow any plan in the state to offer rates without first getting approval from regulators. Sponsors say that’s a response to concerns by some consumer and industry groups that the proposal would give large companies an unfair advantage.

Under both bills, companies could charge essentially unlimited rates. Supporters say homeowners should be able to hold any policy they’re willing and able to pay for. Consumer advocates argue removing state oversight could lead to price gouging, especially for homeowners in high-risk areas, and could flood cheaper, state-backed insurance plans with those who can’t afford higher rates.

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