Governor Scott Passes Bill Regarding Reinsurance

by admin

On Tuesday, Governor Rick Scott signed a bill enabling home insurers to raise premiums up to 15 percent a year for reinsurance, according to the Sun Sentinel.

The timeframe homeowners have to file claims for sinkhole and hurricane damage will be shortened, and there will be an increased ability for insurers to drop coverage in many areas under this new bill.

In 2009, reinsurance costs underwent several changes, with the legislature approving the previous increases as long as premiums did not exceed a 10 percent increase.

“A healthy, stable and competitive private insurance market is critical to the success of Florida, given the hazards we face,” Scott said in a statement.

These hazards include sinkholes, among other potential home damages resulting from hurricanes in the previous years. Supporters of the bill say the changes will result in long-term benefits.

Insurance experts also expect hurricane forecasts to cause raised premiums, according to the Sun Sentinel.

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