A group called ‘Policyholders of Florida’ rallied at the Capitol Monday, saying the Senate's plan to overhaul Citizens Property Insurance could raise rates for some homeowners by nearly 90 percent.
Currently, customers of the state-run insurer of last resort can't have their rates increased by more than 10% per year. The Senate plan would get rid of that cap for new policies.
State Representative Mike Fasano, a New Port Richey Republican, says his constituents have a tough time paying homeowner’s premiums as it is.
"God forbid we have this catastrophic storm that those that want to create scare throughout the state would actually occur", Fasano said. "We’re going to have blue roofs for years and years to come because those homeowners won’t be able to replace those roofs. Talk about a devastation on our real estate and our economy."
Supporters of the bill say less than a quarter of Floridians are Citizens policyholders, so it isn’t fair for the other 75 percent to be on the hook if a major hurricane hits the state.
As it stands now, if Citizens couldn’t pay all its claims after a storm, assessments could be placed on the policies of all Florida homeowners, regardless of who insures them.