Property Insurance

Key Provisions of Property Insurance Bill Passed in Florida

(INSURANCE JOURNAL) - Key provisions of the measure, HB 1495, sent to Gov. Charlie Crist by lawmakers on May 1, as identified by the Florida Banking and Insurance Committee staff include:

Citizens Property Insurance Corp.

• Implements a rate “glide path” capped at 10% per year for Citizens’ policyholders until rates are actuarially sound.
• Allows Citizens to increase its rates to pay the CAT Fund’s “cash build up” program for 5 years. Estimated rate impact to be less than one percent.
• Insurers may offer ex-wind policies to homeowners in the HRA (high risk account) who do not qualify for Citizens because they own $2+ million properties or $750,000+ properties without shutters.
• Deletes the provision that required on January 1, 2010, a seller of a home which is insured by Citizens and located in the wind-borne debris region, with an insured value of $500,000 or more, to disclose in writing to the prospective purchaser its windstorm mitigation rating based on the uniform home grading scale, prior to sale.
• Extends to Dec. 2010, (10 months) the requirement that Citizens reduce its high risk account (HRA) area boundaries in order to lower its 100-year probable maximum loss (PML).

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