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No Hurricanes In 2007, No Insurance Relief For Owners

November 30th, 2007 by flanews

For the second year in a row, Florida avoided a big hurricane hit. But homeowners continue to pay high insurance rates, despite lawmakers’ efforts and the governors promise of rates dropping like a rock. As Chris Casquejo tells us, the insurance industry is not banking on another quiet hurricane season next year.

Here it here: No Hurricanes In 2007, No Insurance Relief For Homeowners

State emergency response team leaders breathed a sigh of relief as they closed the book on another hurricane season with no damage. The last two years were a big change from 2004 and 2005, when insurers paid $36 billion in claims and homeowners saw premiums double and triple. Now, state leaders are asking where is the relief?

These prices have to reflect the reality,” said Lt. Gov. Jeff Kottkamp. “Not just these models that are based on Armageddon, or some other, I dont know what theyre based on.

State meteorologists say Florida lucked out this year. High pressure forced Category 5 Hurricanes Dean and Felix further south. They slammed into Mexico and Nicaragua instead of Florida.

Homeowners insurance companies will make more than $3 billion this year. But they say those profits wont offset the couple of years they spent deep in the red.

Sam Miller is with the Florida Insurance Council.
He blames re-insurance costs. They went up on average 76 percent in 2005. But Miller says re-insurers have lowered rates from 10 to 15 percent this year.

When private reinsurance rates go up, the rates we have to charge consumers go up,” Miller said. “When private reinsurance go down, the rates we charge consumers go down.

And the insurance industry believes Floridians cant bank on another quiet hurricane season in 2008.

Later this month, several insurance companies will appear before state regulators to answer possible collusion charges.

Posted in Hurricane Season, Insurance, State News | 3 Comments »

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