By Tom Flanigan
http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-957243.mp3
Tallahassee, FL – Yesterday on Capital Report, we told you about an unusual coalition of interests that's pushing for an end to Florida's mandatory minimum sentences for minor drug offenses. Today, Tom Flanigan has yet another example of a bill backed by people who usually don't see eye-to-eye on much of anything
Umatilla Republican State Senator Alan Hays says state-run Citizens Property Insurance is teetering on the brink of catastrophe.
"And right now, Citizens Property Insurance, which is the largest residential insurer in the state, has insured over one-point-two million policies. And the insured value of those properties exceeds $400 billion, and then have an estimated surplus as of December 31st last year of only four-and-a-half billion dollars."
Which means, Hays says, it would take only one big hurricane to blow Citizens into insolvency. Florida's taxpayers and even those who have their property insurance with private companies would have to pick up the tab. Hays says there is a way out of this potential mess. It's a bill he introduced shortly after the beginning of the legislative session. It would hike the rates for all Citizens policyholders by twenty-five percent. It would restrict who could buy their insurance from Citizens. Just as important, Hays says, is giving Floridians less motivation to build in risky coastal areas. So the bill also contains provisions.
"That would prohibit the writing of policies for any new construction in environmentally sensitive areas that bear the highest risk for hurricanes, such as land federally-designated under the Coastal Barriers Resource Act and anything seaward of the Coastal Construction Control Act. And then we also will prohibit Citizens from writing policies on remodeling projects and pre-existing structures in these affected areas as well."
Hays bill has a strange coalition of backers, who have different reasons for supporting the measure. One is Scott O'Steen with the Tallahassee Tea Party.
"Citizens needs to be returned to its original role as an insurer of last resort. And it should be reformed so that it does not promote the kind of development that will cost lives and taxpayers billions of dollars in taxes over the coming decades. That is why the Tallahassee Tea Party stands united with groups, including some that we hardly agree with on most issues."
One of these groups is the Florida Wildlife Federation, headed by Manley Fuller. He applauds the probably ramping back of much coastal construction if insurance becomes less obtainable.
"Some of these areas are also among our most valuable coastal habitats. Barrier islands form natural buffers which reduce the exposure of the built environment."
Backing the bill from a growth management angle, Charles Pattison of One-Thousand Friends of Florida.
"We hope that this is the first of a series of bills that will look at subsidies for growth that are in the wrong place and eliminate those on behalf of all taxpayers."
Also in support, the free-market think tank The Heartland Institute and its vice president Eli Lehrer.
"Moving Citizens rates toward risk-based ones is the single most important thing that Florida can do to protect its future, its residents and its environment."
There are others who favor Senator Hays' legislation. Including, he says, one man whose support is more than a little bit important.
"Governor Scott is in complete agreement with what I'm trying to do."
And, should the bill turn into law, what about the nearly quarter-of-a-million coastal property owners for whom Citizens coverage may no longer be viable?
"We don't know that the private sector won't take on these properties, but there's also the surplus lines of insurance out there available as well. And if no one is willing to take on the risk, I think there's a very loud lesson there; perhaps they ought not be building there."
Which would be just fine and dandy as far as the supporters of Hays bill are concerned. For whatever reason.