 |
Bay News 9
Local Programming
On Demand
About
Community
Market Place
Services
New way of predicting storms may mean higher insurance
New standards for hurricane risk modeling could increase insurance costs for Florida homeowners.
TALLAHASSEE (Bay News 9) -- After two quiet hurricane seasons, many Floridians believe that property insurance rates are due to come down.
Rates skyrocketed after the hurricane seasons of 2004 and 2005. State lawmakers have tried to bring them down, but with little luck. Now a reduction in insurance rates may be even less likely, thanks to a new, controversial way of predicting the future.
Hurricane risk modeling is a way of looking back in time to estimate how many storms can be expected in the future. Traditionally, risk modeling used to look back 100 years to set rates. Now, re-insurers only look back over the past 10 years. This approach is illegal for Florida insurers, but not for their international re-insurers.
State regulators said that, while the have the authority to crack down on Florida insurers, they have no such power over global re-insurers. What's more, while they do have the ability to deny rate increases to state insurers, they can only do so if those insurers can prove that their own bills are not going up.
Ed Domansky, with the Florida Office of Insurance Regulation, said that, either way, homeowners are the ones left paying the price.
"If an insurance company ends up having to pay more for reinsurance, there's a good likelihood that they would need to find a way to pass these costs along to their policyholders," he said.
The hurricane seasons of 2004 and 2005 sent insurance rates in Florida sky-high.
On the other hand, lobbyists for the insurance industry say the change is justified because storm seasons can be so unpredictable.
"We're in a period right now where, not only do you normally have a hurricane every year, you have a bunch of hurricanes every year, so they're trying to figure out what their rates ought to be to reflect that," said Sam Miller of the Florida Insurance Council. "Now, in Florida, it's like, 'We're just not going to let you take that approach.'"
For homeowners like Joeann Vesecky, who lives in her dream home on the Florida Panhandle, the prospect of paying even more money for insurance is a nightmare. Her own rates have doubled over the last five years.
"I've just gone along with it, considering it goes along with the cost of an ice cream cone," she said. "Used to be a nickel, and now you pay $1.50 for a single-dip ice cream cone. So, it's all relative to the times."
She said she has just one request for those who insure Florida homeowners.
"Let's be fair to our people here in Florida."
Be in the Know with Bay News 9 Now!
Get news, weather, and traffic alerts delivered directly to your computer desktop, e-mail, or cell phone with Bay News 9 Now.
- Subscribe for free!
More State Stories
- Crist to tap reserves for budget shortfall
- Huge tree topples on south Florida home
- Fay batters the Lake Okeechobee area
- Crist to tap reserves for part of budget deficit
- Obama speaks to VFW in Orlando
- Fay's winds take kite surfer on wild ride
- Crist: 'Stay calm, stay safe'
- Tolls statewide to be reinstated
- Fay weakening over east Florida
Get the latest news, weather, and traffic on your computer desktop, your cell phone or via e-mail with Bay News 9's free alert service, Bay News 9 Now.
Become An Asterisk Hunter!
At Bright House Networks, we prefer to keep things simple.So the next time you're looking for TV, home phone and Internet service with a 30-day, money-back guarantee, but without the fine print surprises, call
1-866-976-EASY.
Learn more at AsteriskHunters.com.
