Speedy approval seems likely for a proposal to use “windfall” sales tax dollars to bolster Florida's home insurer of last resort and fund home improvements against hurricanes, a leading state insurance trade representative said.
Appropriations committees in both the House and Senate yesterday recommended setting aside hundreds of millions of dollars to provide insurance rate relief to Florida homeowners by funding Citizens Property Insurance Corp., the state residual homeowners market whose deficit must be made up by an assessment on state homeowners.
Sam Miller, executive director of the Florida Insurance Council, said the two competing measures could reach the House and Senate floors as soon as next week, which is the next to last one in the session.
“It is very likely the legislature will cover a significant part of the [Citizens] deficit, if not all, with windfall tax dollars,” Mr. Miller said.
Last Thursday, the Florida General Revenue Estimating Conference announced that Florida will now receive another $960 million in unanticipated revenue over the $3.2 billion increase in revenue Florida is projected to see this year and the next.
Following revenue projections, House leaders recommended that $920 million be set aside to offset Citizens' assessments on Floridians, with an additional $500 million earmarked for grants and no-interest loans to help Floridians strengthen their homes against hurricanes.
Meanwhile, Senate leaders are proposing $750 million be dedicated to offset insurance assessments, with another $50 million allocated for mitigation.
House leaders are also recommending that the Florida Comprehensive Hurricane Damage Mitigation Program be administered by the Florida Department of Financial Services. In addition to providing financial incentives for Floridians to mitigate their homes, the program would offer free home retrofit inspections to homeowners.
The proposals are contained in two bills, HB 7225 and SB 1980.
Tom Gallagher, Florida's chief financial officer, praised the proposals.
“Citizens was not designed to handle 800,000 policies,” Mr. Gallagher said. “Helping Floridians strengthen their homes against catastrophes, moving people out of Citizens, or keeping them from ending up in the insurer of last resort are all wise investments for our future.”
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