Home insurance premiums could double in five years under bill

The following article was published in the Orlando Sentinel on May 11, 2011:

Florida Property Insurance: Premiums could double in five years under bill

By Julie Patel

Homeowners, some already hit with double-digit property insurance rate hikes in recent years, could see premiums more than double in five years. They also could lose their right to file claims for late-surfacing damage or suffer more home damage while they save up to make repairs.

Those are possible outcomes predicted by some homeowners, local leaders and a major home builders group from the sweeping property insurance bill that hit Gov. Rick Scott’s desk Wednesday. The governor has until May 26 to decide whether to sign it into law or veto it.

Supporters of the bill, including insurers, say the bill could strengthen the state’s property insurance market and draw more private insurers to Florida — a key goal for Scott and other state leaders who want policyholders to have more insurance options. Many homeowners in South Florida have only the option of insuring their homes with state-backed Citizens Property Insurance.

Insurers report premiums are not keeping pace with their costs, including expenses for sinkhole claims.

Find this article here:  http://www.orlandosentinel.com/news/local/fl-property-insurance-react-20110511,0,2673303.story