Homeowners insurance crisis: Crist proposes bill to cut rates in Florida

TAMPA, Fla. (WFLA) — Lawmakers are scheduled to return to Tallahassee later this month for a particular session on property insurance coverage. However there’s additionally a brand new effort on the federal degree to handle the disaster.

U.S. Rep. Charlie Crist, a Democrat from St. Petersburg who’s operating for Florida governor, is about to file a invoice in Washington on Tuesday that he says might decrease charges by a minimum of 10 %.

“It’s set as much as cut back owners insurance coverage premiums,” mentioned Rep. Crist.

Proper now, Crist says, high-rated insurance coverage corporations are required to be insured towards uncommon catastrophic occasions: storms that hit as soon as each 130 years. Charges have spiked, partially, by the price of reinsurance: Insurance coverage for insurance coverage corporations.

The Fueling Inexpensive Insurance coverage for The Owners, or FAITH Act, is about to be filed in Washington D.C. Tuesday. Basically, the invoice would enable insurers to purchase much less insurance coverage. The thought is that if they pay much less, so will you.

8 On Your Facet Investigator Mahsa Saeidi requested Crist how will probably be assured that the financial savings are handed all the way down to owners.

“You set it within the regulation. You set it within the regulation,” mentioned Crist.

However what if the sudden occurs, and Florida will get hit with the storm of the century in 2022? Rep. Crist says the feds, via the U.S. Division of the Treasury, would then give Florida a mortgage.

“It will be the bottom rate of interest of cash that the state can be advantaged by,” mentioned Crist.

Over the next 10 years, the state, via you, must pay it again.

So how a lot could possibly be saved if this invoice turns into regulation?

“It’s an amazing query,” mentioned Crist. “After I was governor earlier than, we received it to decrease these charges by a minimum of 10%. It’s hoped this may do the identical factor if not slightly bit extra.”

Crist says it’s good to be insured towards extraordinarily uncommon occasions. However, for now, he believes it’s higher to stabilize the market and have a “Plan B.”

Are you a home-owner impacted by this disaster? E mail Investigator Mahsa Saeidi at MSaeidi@WFLA.com