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A war of words has erupted in the Governor’s race over homeowners insurance. Rick Scott is proposing increasing rates for Citizens Insurance and freeing private insurers from lawsuits and some regulation, as well as ending assessments on individual policies following storms. But as Mike Vasilinda tells us, there are no easy answers.

When Hurricane Andrew roared ashore 18 years ago last month, it plunged Florida’s insurance market into perpetual crisis. From the rubble of mobile homes came the state run Citizens property insurance. Citizen’s is now the largest insurer in Florida, and its rates don’t equal its risk. Customer Bill McKeown wasn’t surprised when his rates went up six percent this year.  “You don’t have to like it, even though you understand”, he told us.

Republican gubernatorial hopeful Rick Scott would allow Citizens rates to become actuarially sound, but doesn’t say how fast. . Democrat Alex Sink would limit the increases to 10 percent a year. Rob Weisert of Florida Taxwatch says the system is so broken, Florida needs to start from scratch

“All of Florida’s insurance market is artificially low. It is not actuarially sound, and the worst part about cheap insurance is you don’t get a check after a storm hits,” says Weisert.

State lawmakers passed legislation in 2009 and again this year to address some of the cost drivers. Both bills were vetoed by Governor Charlie Crist..even though the two thousand ten version was supported by his own insurance commissioner”.

The legislation would have set limits on filing claims, and it would have allowed automatic rate increases. The Florida Insurance Councils Sam Miller says common sense…not a complete overhaul is what’s needed. “Because Citizen’s rates don’t cover one hundred percent of citizen’s claims, everyone else in Florida is paying a surcharge” says Miller.

And while Rick Scott and Alex Sink disagree on a lot…their biggest difference might be over what to do to to stabilize you homeowners insurance rates.