Rising insurance rates have made it harder for current and potential homeowners to afford the carrying cost of even moderate homes. REALTORS® have been working with their legislators to find a solution, but it seems to have taken the determination of a new Governor to make a beginning. The legislature has passed the first of what is hoped to be a series of reforms.

The Special Session on Hurricane Preparedness and Insurance:
• Repeals the January 1, 2007 Citizens rate increase
• Prohibits rate increases in 2007
• Allows higher deductibles to reduce premiums
• Allows exclusion of contents coverage
• Allows exclusion of wind coverage with the approval of the homeowner's mortgage company
• Requires insurance companies evaluate structure rather than age alone in denying coverage
• Requires insurance companies to inform homeowners of mitigation measures they may take to reduce costs
• Makes reinsurance available through the CAT fund, reducing costs to insurance companies with the savings passed on to the customer

The results are already being seen. Refund checks for those renewing wind insurance recently have been sent out. Renewal notices are being revised. Overall insurance rates are being reviewed and at least three companies have submitted rate decreases from 11 to 22% for wind insurance. Others may only be in the range of 3 to 5%, but whatever the reduction, it is good news for the homeowner.

The Florida Association of REALTORS® will continue to lobby for additional insurance reform. Individual REALTORS® remain active on your behalf. We are committed to making affordable housing a reality for everyone and to maintaining the quality of life we have for so long enjoyed in Tallahassee.

Written by: By Rae Roeder, e-PRO, CRS, GRI, Rae Roeder Realty