Florida gubernatorial candidate Paul Renner (R) announced his homeowner's insurance plan to help lower insurance rates by double digits with Florida's hurricane season kicking off this week.
"Before I was Speaker of the House, Florida was ranked as the worst insurance market in the country due to hurricanes, frivolous litigation, and fraud," Renner said in a statement. "We passed legislation combatting frivolous lawsuits and insurance fraud. With my proposed additional reforms, we can push rates lower and make Florida affordable for all."
Renner's plan to make insurance more affordable includes the following.
- Decrease and eliminate tax on homeowners’ insurance premiums.
- Revise requirements for the Florida Hurricane Catastrophe Fund under three steps
A) Provide coverage for smaller hurricanes. This would allow Florida insurers to lessen their purchases of pricy reinsurance from London and Bermuda-based companies.
B) Erase the 25% rapid cash build up provision. State law lifts the Florida Hurricane Catastrophe Fund premiums insurers pay into the system by 25% above what is actually necessary, or a "Hurricane Tax." Removing the upcharge, Renner says, would benefit the consumer.
C) Cover Actual Claims Handling Costs (Loss Adjustment Expense). State law confines Hurricane Catastrophe Fund payments for claims handling after a hurricane. Renner says this boosts the cost of private reinsurance may lead to poor claim handling following a storm.
