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A battle is underway in Tallahassee over how much Citizen’s, the state run insurer of last resort, should be allowed to raise rates. As Mike Vasilinda tells us, the bigger the break Citizens customers get, the higher the chance all of us will pay more for insurance.

Lawmakers are under some pressure to reach agreement. A freeze on Citizens rates expires in January and without a cap, premiums could rise as much as 40%, although state regulators have the final say.

Citizen’s customers could soon be paying 5, 10 or 20 percent more. How much will depend on lawmakers.

The Senate wants just 5 percent.

“The most that anyone can afford in this state is probably no increase at all, but at least let’s put a cap at 5 percent so people can somehow work that into their budget,” Sen. Mike Fasano (R-Pasco County) said.

The House is pushing a 10 to 20 percent hike.

“To go at 5 percent, I think is irresponsible and it’s almost insignificant,” Rep. Alan Hayes (R-Ocala).

Governor Charlie Crist says less is better.

“Obviously, when you’re in a tough economy if there’s less of an increase, that’s better for the people,” Crist said.

What’s going on here is a game of poker between the Senate and the House. Citizen’s customers will end up paying more, but the question is will everyone else?

f this beach house still looks like this after hurricane season, then non Citizen’s customers won’t see an assessment.  But if it looks like this, Citizens likely won’t have enough cash for claims and every policy holder in the state will be paying more. Business interests say  the more Citizens has from higher premiums, the less risk to everyone else.

“We need to start having a real, honest conversation with the state of Florida about what these rates really mean,” Jose Gonzalez with Associated Industries of Florida said.

Most policy holders in Florida are already paying an extra 10 percent. That covers the losses from the 2004 and 2005 storms.

Lawmakers are under some pressure to reach agreement. A freeze on Citizens rates expires in January and without a cap, premiums could rise as much as 40%, although state regulators have the final say.