Fla. Senate Property Insurance Package Set For Final Vote
TALLAHASSEE (CBS4) -- A sweeping property insurance package is poised for final passage in the Florida Senate after Senators Wednesday gave preliminary approval to a measure (SB 408) that makes a number of changes that were vetoed last summer by former Gov. Charlie Crist.
Backers say the measure was designed to create more competition for commercial insurers and also cut down on fraudulent sinkhole claims.
The industry-backed measure makes changes insurers say are needed to eliminate or reduce many of the cost drivers that are boosting insurance rates around the state.
Following lengthy questions and the addition of nearly a dozen floor amendments, the bill is ready for third reading as early as Thursday.
The bill's most contentious provisions deal with sinkhole insurance. Several attempts were offered but failed to require insurers to continue providing sinkhole coverage, an area industry representatives say is wrought with fraud as homeowners and attorneys file bogus sinkhole claims that are difficult to refute.
Critics such as Sen. Mike Fasano, R-New Port Richey, say the bill as written will force residents into Citizens Property Insurance Corp. because they will no longer be able to get affordable sinkhole coverage from the private market.
Bill sponsor Garrett Richter, R-Naples, said catastrophic sinkhole losses will still be covered.
The House is also considering similar legislation.
(©2011 CBS Local Media, a division of CBS Radio Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. The News Service of Florida contributed to this report.)
