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Thousands of Florida property owners would have to look out of state for insurance under a senate plan unveiled today. Legislation has been filed to force Citizens Property Insurance to dump houses worth more than half a million dollars. As Whitney Ray tells us, if that happens and Florida insurers still say the properties are too expensive, homeowners would be at the mercy of unregulated companies.

If Florida insurance companies deem a house too risky to cover… then state run Citizens Property Insurance will sell the homeowner coverage.

Citizens has 1.3 million policies… way more than the state can handle if a major storm hits.

“My goal is to depopulate Citizens,” said Sen. Hays.

State Senator Alan Hays unveiled a plan to force high risk homes out of the states care by raising rates 25 percent a year… and dropping properties worth more than half a million dollars by 2015.

But if the state says these homes are too expensive and the private sector says they’re too risky, where are the homeowners to turn to get coverage?

The answer is out of state. If that scenario plays out, mortgage companies will buy coverage for the homeowner… out of state and for thousands of dollars more.

State Senator Mike Fasano says if Citizens did start dropping policies the effects would be…

“Economic disaster if something like this were to go into place. First of all it would increase premiums on every property owner, every home owner, condo owner, manufactured home owners by double digits,” said Fasano.

A plan is already in effect to lighten the state’s load by raising rates 10 percent a year, but if a major storm hits before thousands of policies are dropped, all Floridians would be on the hook to pay claims. Environmentalists are getting behind the Citizens legislation. They say if the state stops subsidizing the high risk properties… then beachfront development will slow.