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Lawmaker Wants To Insure Against Rate Hikes

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By Carl  Orth | The Suncoast News

Published: January 17, 2009

NEW PORT RICHEY - With residents already struggling to make ends meet during the recession, the last thing they need now are higher premiums on Citizens Property Insurance homeowner insurance policies, a state lawmaker believes.

So state Sen. Mike Fasano, R-New Port Richey, announced this week he will introduce legislation in March to extend the rate freeze on Citizens rates for another year. Citizens is the state-sanctioned property insurer of last resort.

Without an extension of the freeze, Citizens executives could ask to raise rates an average of 10 percent statewide once the rate freeze expires Dec. 31, according to Greg Giordano, Fasano's chief legislative assistant.

Individual policy holders could see premiums rise as much as 20 percent, Giordano said.

"This is not the time to raise rates" for Citizens policies, Giordano said about Fasano's reasoning.

Fasano is co-sponsoring legislation that would roll back part of a recent 25 percent rate increase by Progress Energy Florida.

The Legislature authorized such "advanced recovery" rate increases to help utilities pay for new nuclear power plants.

If lawmakers don't act during the Legislature's 2009 regular session, which starts March 3, the two-year freeze on Citizens insurance rates will expire, Giordano noted.

A Citizens task force is scheduled to meet Jan. 22 in Jacksonville to come up with recommendations for lawmakers.

The task force agenda includes a discussion about limiting possible rate increases to no more than 10 percent a year, on a state average.

That prompted Fasano to write the bill that would extend the rate freeze another year.

Carl Orth can be reached at 727-815-1068 or corth@suncoastnews.com.

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