Florida's New Insurance Bill

In January 2007 Florida passed a new insurance bill hoping to lower costs for property insurance. Although this law reduces the cost of insuring Florida residents, if a catastrophic hurricane, it could cost the state billions of dollars just to recover.

The law was adopted to suffer the enormous increase in the cost of insurance for people at home in Florida since 2004 and 2005 after the devastating hurricanes have had them, especially those who live on the --Coastlines. Many have seen not only twice the cost, but some have even seen triple, the cost of home insurance.

Although this law is a large number of homeowners some relief, how much relief remains unanswered. It is estimated that every benefit of 5 percent for many inland customers to 20 percent for the rest of the draft, especially on the coast. It has however not yet clear if the residents will see a savings of this initial period willBill.

With this law now in force, have private insurance more state backup insurance, in turn, reduce prices for consumers. The state is now among the majority of the responsibility for payment of the Hurricane Catastrophe Fund in the event of storm damage, in fact, the insurers, the risk is greatly reduced. This effectively means there is no need for insurance companies to raise prices for consumers.

Since the backup coverage for insurersnow cheaper than the private reinsurance that the majority of companies to buy, it immediately cuts one of their biggest costs that will ultimately be passed on to consumers.

Consumers can also change to their coverage under this law. However, if a homeowner still owes a mortgage on her house there is a very strong possibility that many of the changes are not available since they will mortgage lenders generally have requirements for reporting at home.

But how many people arecomfortable with this law? According to a recent poll by Quinnipiac University 29th January 2007 done by 4 February 2007, it seems apparent that the majority of this law were approved. Sixty-two percent of the population of Florida approved this new law, while 14% have no opinion and reject 24% or so.

All in all, this law was designed to keep money in the pockets of Florida residents, rather than into the pockets of the insurance agencies. In the nextYear, we will be able to see whether this law really dream come true in Florida resident or a political mistake that cost the taxpayers money.

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