June. While for many it evokes images of summer vacations, weddings, and days at the shore, here in Florida we think of hurricanes. So it is appropriate that our June issue includes several articles on the 2010 season and residential and commercial property insurance. Our cover story, co-authored by Richard J. Fidei, Esq., and Fred E. Karlinsky, Esq., of Colodny, Fass, Talenfeld, Karlinsky & Abate, P.A., offers an extensive overview of our current property insurance market, along with some troubling statistics. The authors note that Florida is the most exposed state for hurricane loss, with a total insured value of almost $2.5 trillion. With that much exposure, can the few hardy insurers who remain really offer enough protection to homeowners?

Speaking of capacity, an article by Ravi Singhvi, vice president of catastrophe risk modeling at NAPCO, explains how the data-gathering process, when properly utilized, can solve the riddle of the correct amount of coverage for property owners.

For those of you with anxious homeowners, Lynne McChristian, Florida representative for the Insurance Information Institute, discusses actual cash value, replacement cost value, and the proposed revised claims-paying procedures in SB 2044.

Our two state-created “safety nets,” Citizens Property Insurance Corp. and the Florida Hurricane Catastrophe Fund, also earned space inside, and this time, the news is generally positive.

In his report on the condition of the Cat Fund, reporter Gary Fineout quotes fund financial advisor John Forney optimistically declaring, “The conclusion is the Cat Fund is in great shape going into the 2010 hurricane season.” I hope Forney is able to express similar sentiments at the close of the season.

Fidei and Karlinksy expand their cover story with a sidebar about how recent changes to Citizens' takeout mandates by Florida Insurance Commissioner Kevin McCarty may help move policies out of the state insurer.

McCarty has taken a significant amount of heat lately from many sides. Despite his recent public support of SB 2044 and what is perceived as a more conciliatory attitude toward the industry, some think it is too little too late. Among those not on Team McCarty is Mark O'Connell, CEO of PIA-Florida. In a Guest Commentary, the association head says it is time for McCarty to leave, declaring that he has abdicated his role as regulator. O'Connell also weighs in on the Cabinet, legislators, the Cat Fund, and Citizens.

I would be remiss if I did not offer some commentary on the oil spill that is destroying the waterways in and around Louisiana and threatening our beaches. The spectacle of “pass the blame” by BP, Transocean, and Halliburton at the congressional hearings was awful; worse yet was the revelation of secret videos showing that the accident is spewing oil at a faster rate than the companies admitted. Worst of all is the fact that a month into the disaster they still have not fixed it.

However, I see no need for a special session to craft a constitutional amendment banning oil drilling in Florida waters. It may be good political theater for candidate Charlie Crist to call everyone back to Tallahassee, but in reality, oil rigs are not suddenly going to emerge out of the Gulf like Botticelli's “Venus.” Instead of treating a proposed constitutional amendment like a legislative form of speed dating, lawmakers should use these intervening months to fully assess the damage from the spill and to solicit legal advice and public opinion in preparation for conducting measured discussions in 2011.

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