Tallahassee Democrat
by Manley Fuller
March 22, 2011
This legislative session we again are faced with one of Florida’s most pressing issues, the state’s property insurance crisis.
In light of our extreme vulnerability to catastrophic storm losses, the Florida Wildlife Federation (FWF) supports the need for reform of both Citizens Property Insurance Corp., and the Florida Hurricane Catastrophe Fund (Cat Fund).
Reform efforts address the hurricane taxes that are levied on our insurance premiums because of the structure of these government-run entities.
Nonprofits and all Florida insurance policyholders are still paying for the 2004 and 2005 storms and will be forced to continue paying for these storms for at least another five years.
FWF will continue to advocate for legislative reform that will end the practice of allowing Citizens and the Cat Fund to subsidize reckless coastal development in the most hazardous areas of the state with artificially low premiums. Not only is it ethically and fiscally inappropriate to require these subsidies from Florida’s businesses, nonprofits and working families, but also it threatens the remaining unblemished beaches, coastal environments and barrier islands that are central to Florida’s tourism and economic development.
Moreover, natural, undeveloped coastal islands benefit all Floridians by helping to reduce inland storm damage. Actuarially sound insurance rates will serve to disincentivize future development in low-lying, flood-prone areas and along undisturbed coastal barriers.
In 2010 (actually an active Atlantic storm year), we were fortunate that steering currents spared us from any tropical storms making landfall on our coast, but another storm season starts in just three months.
It is imperative that Florida’s legislative leaders use this regular legislative session to make the desperately needed changes to protect Florida, its residents and the environment from these irrational insurance subsidies.
We should not continue to allow all Floridians, including nonprofits, businesses, schools, churches, renters and automobile policyholders across the state, to subsidize those who choose to live in high-risk areas.
On Wednesday, the House Insurance Committee will take up bills related to this important issue.
I urge our elected leaders to change both Citizens and the Cat Fund in an effort to eliminate the insurance surcharges all Floridians are paying and help protect our coastal environment, which provides us with so many economic and environmental benefits.
ABOUT THE AUTHOR: Manley Fuller is president of the Florida Wildlife Federation, based in Tallahassee. Contact him at wildlfed@gmail.com.
