Insurance

A major blow: Floridians are hoping lawmakers meeting in a special session this month can come up with solutions that will lower escalating property insurance rates.

Gov. Charlie Crist proposes two populist measures: Forcing companies doing business in Florida that write residential property coverage in other states to offer homeowners coverage here too. He also wants to prohibit the Florida standalone subsidiaries that insurers set up after 1992's Hurricane Andrew to protect them from losses in Florida and from having to share profits with Florida units.

The Florida Property and Casualty Insurance Reform Committee, headed by former Lt. Gov. Toni Jennings, last year endorsed neither measure. But her group has proposed a lengthy list of changes, including adjusting the state's catastrophe fund to lower the cost of reinsurance -- insurers' insurance.

The reinsurance industry says demand was up 120% in 2006, while the capacity available was only 80% of 2005's figure, according to the committee report. Democrats have proposed having the state essentially take over at least some hurricane risk and leave the private sector to traditional property insurance against fire and theft. An industry group of independent insurance agents and real estate professionals has said it's "not inappropriate" to research having the state take over hurricane coverage from the private sector and has asked for a formal study.

Says Stander: "Probaly what we can all do is pause and take a deep breath. We run the risk of exacerbating the problem."

Tags: Around Florida