Insurance Bill May Save Homeowners

LABELLE, FL. -- Governor Charlie Crist today commended the Florida House and Senate for continuing the work of lowering property insurance rates by passing Senate Bill 2498.  The bill ensures affordability and consumer choice within Florida's insurance market.

"The Florida House and the Senate have been working very hard to bring relief to our homeowners, and I am grateful for their dedication," said Governor Crist. "The people have pleaded for relief, and the good men and women of the Florida Legislature have answered the call. This is the right thing to do."

 In summary, Senate Bill 2498 provides the following changes to Florida's insurance law:

·        Extends the rate freeze for Citizens Property Insurance Corporation rates until January 1, 2009;

·        Lowers the qualifying threshold by 10 percent so that consumers can purchase insurance from Citizens when comparable coverage from private insurers is more than 15 percent higher than Citizens rates;

·        Requires nationwide insurance companies to report their national profits when filing for rate increases;

·        Eliminates new Florida-only subsidiaries, or "pup" companies.

"We are giving the insurance industry the tools, but we must remain vigilant," said Governor Crist.  "We must hold the industry's feet to the fire and ensure that once this relief is provided that the companies pass this relief on to Florida homeowners."


Governor Crist also praised the Legislature for appropriating $100 million for Everglades restoration; $54 million – double current funding levels – to expand Lake Okeechobee's water-storage areas and treatment marshes; and $40 million to improve the environmental health of the St. Lucie and Caloosahatchee rivers, which are important estuaries that affect the quality of life and economy of nearby communities.