The Florida Senate bowed to an outcry over uncapped rates for future customers of state-run insurer Citizens on Thursday, adopting a House version that won’t send some premiums soaring up to 85 percent.
One lawmaker called it “Citizens Lite,” but it drew generally favorable reaction from homeowner advocates. It sets up a clearinghouse that could keep some customers out of Citizens if comparably priced private insurance is available. Rate increases remain capped at 10 percent a year for Citizens customers.
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What SB 1770 does if it becomes law
•Creates clearinghouse: Makes homeowners ineligible for state-run insurer Citizens if private insurance is available for same or lower price
•Reduces property coverage: Maximum Citizens coverage for properities is reduced from $1 million to $700,000 over several years
•Corporate changes: Consumer advocate to be appointed by the governor to Citizens board, adds inspector general
•Reduces coastal coverage: New construction in sensitive coastal areas not eligible for Citizens