Last night was the first of eight town-hall style meetings across the state to address the issue of property taxes. The Panama City event saw a croud of almost 500 citizens who wanted to let their opinions be known and to share their thoughts on how to reduce property taxes.
Read the story here:
http://www.jacksonville.com/tu-online/stories/012607/met_7581851.shtml
Friday, January 26, 2007
Wednesday, January 24, 2007
Legislature Passes Insurance Reform Bill
On Monday, January 22, the Legislature passed a bi-partisan insurance reform bill, CS/HB 1A. Here is information on the bill:
Florida Hurricane Catastrophe Fund
• The bill raises the level of backup coverage insurers can purchase by creating the Temporary Increase in Coverage Limit options (TICL) for the 2007, 2008, and 2009 hurricane seasons. Through this program, insurers can buy additional reinsurance of up to $12 billion above the Florida Hurricane Catastrophe Fund industry limit of $16 billion (estimated for 2007), allowing them to lower rates.
• The bill creates Temporary Emergency Additional Coverage Options (TEACO) within the Florida Hurricane Catastrophe Fund (FHCF), which offers insurers additional FHCF coverage by selecting their share of industry retention level of $3 billion, $4 billion or $5 billion (compared to the $6 billion retention estimated for 2007) for 2007, 2008, and 2009.
• The bill provides an additional amount of FHCF coverage of up to $10 million dollars that insurers may purchase at a premium of 50 percent of the additional reimbursement coverage provided (i.e. $5 million premium for $10 million coverage). The ability to purchase the coverage option expires May 31, 2008.
• The bill repeals the 25 percent rapid cash buildup factor for FHCF premiums, which will translate into immediate rate savings for Florida property owners.
• The bill requires all residential property insurers make a rate filing with the Office of Insurance Regulation which shows how the expanded FHCF coverage results in savings or reduction in loss exposure to the insurer.
Citizens Property Insurance Corporation (“Citizens”)
• The legislation reverses the rate increase that took effect January 1, 2007. It requires Citizens to provide full rebates to homeowners who have paid this rate.
• The legislation deletes the requirement that Citizens charge rates sufficient to purchase reinsurance for each of its three accounts. This is important because Citizens Property Insurance is not required to purchase reinsurance, but had been charging as though it did purchase reinsurance, and was passing those fictitious costs along to Floridians.
• The bill deletes the requirement that Citizens’ rates be non-competitive and no lower than the top 20 insurers. However, rates charged by citizens must still not be excessive, inadequate, or unfairly discriminatory.
• The bill delays until 2008 the requirement that Citizens impose up to a 10 percent premium assessment on all nonhomestead policyholders.
• The legislation requires Citizens to exempt policies from the 10-day waiting period for a real estate closing.
• As of January 1, 2009, to qualify for Citizens, properties over 500 to 2,500 feet landward of the Coastal Construction Control Line must be built to “Code-Plus” building standards developed by the Florida Building Commission, ensuring that those homes will be better prepared for damaging storms.
• The bill deletes provisions making nonhomestead policyholders ineligible for Citizens coverage effective March 1, 2007.
• The bill provides that if a policyholder is offered coverage from an insurer at the insurer’s approved rate, then that policyholder is not eligible for a Citizens’ policy, unless the insurer’s premium is more than 25 percent greater than the premium for comparable coverage provided by Citizens.
• It also authorizes Citizens to provide commercial (business) coverage statewide.
• In addition, the bill authorizes Citizens to write multiperil policies (as well as wind-only policies) in the areas eligible for coverage in the High Risk Account. If approved by the Financial Services Commission and the Legislative Budget Commission.
Coverage Exclusions; Deductibles; Payment of Premium
• The legislation requires insurers to make available to policyholders the option to exclude windstorm coverage, if the policyholder personally writes a statement that he/she does not want such coverage and provides documentation of approval by any mortgage or lien holder. This will reduce the risk for insurers, enabling them to offer lower rates.
• It eliminates maximum allowable deductibles, but requires a written statement by the policyholder and approval by a mortgage or lien holder.
• The bill prohibits property insurers from denying coverage based solely on the age of the structure and requires consideration of the structure’s wind resistance.
• It also requires insurers to offer the option to exclude coverage for contents, if the policyholder personally writes a statement that he or she does not want such coverage.
• The bill requires insurers to allow personal lines residential and commercial policyholders to pay premiums on a quarterly or semiannual installment plan.
Premium Notice
• The bill requires insurers to specify on the renewal premium notice:
o The amount of an assessment by the Florida Hurricane Catastrophe Fund, Citizens Property Insurance Corporation, and the Florida Insurance Guaranty Association, and the full name of the assessing authority; and,
o The amount a premium has changed due to a change in rate or coverage.
Hurricane Mitigation
• The bill requires the Financial Services Commission to develop by rule a uniform mitigation verification inspection form that must be used by all insurers to factor discounts for wind insurance.
• The bill makes the following changes to grant programs within the Florida Comprehensive Hurricane Damage Mitigation Program:
o Low income homeowners are exempt from the requirement to have a dwelling with an “insured value” of $500,000 or less (in other words, the home does not have to be insured).
o Grants may be used on previously inspected existing structures or a site built single family dwelling that is under construction to replace a homestead damaged or destroyed by a hurricane.
o Low-income homeowners may use grant funding to repair existing structures if the repairs are mitigation improvements.
• The bill requires the Financial Services Commission to develop a uniform home grading scale to grade a home’s ability to withstand the wind-load from a hurricane.
• The bill requires every licensed general lines insurance agent and consumer representative to complete one hour of continuing education every two years regarding premium discounts available on property insurance policies based on hurricane mitigation options and how to obtain discounts.
• It requires insurers to provide notice of combinations of discounts, credits, rate differentials, or reductions in deductibles, for windstorm mitigation.
• It requires insurers to offer deductible reductions for mitigation measures.
Florida Building Code
• It eliminates the “Panhandle exemption,” under which homes in the Florida Panhandle were held to fewer safeguards against storms.
• It requires the Florida Building Commission to develop voluntary “Code-Plus” guidelines for homeowners who wish to build their homes at a higher standard.
Insurance Consumer Advocate
• It requires the Insurance Consumer Advocate to provide an annual report card on insurance companies using a letter grade scale established by the Financial Services Commission.
Self-Insurance Funds; Bonding Authority
• The legislation allows hospitals, local governments and Community Associations to form risk pools and self-insurance funds.
Catastrophic Ground Cover Collapse Coverage; Sinkholes
• The bill requires property insurers to provide coverage for sinkholes.
• Under this legislation insurers must continue to make sinkhole coverage available for an appropriate additional premium. If Insurers offer policies that exclude coverage for sinkhole losses, the company must provide written notice to the policyholder in 14-point type.
“Cherry Picking”
• Under this bill, if a company provides private passenger automobile insurance in Florida and offers homeowners policies in other states, they will be required to offer homeowner’s coverage in Florida.
Florida Hurricane Catastrophe Fund
• The bill raises the level of backup coverage insurers can purchase by creating the Temporary Increase in Coverage Limit options (TICL) for the 2007, 2008, and 2009 hurricane seasons. Through this program, insurers can buy additional reinsurance of up to $12 billion above the Florida Hurricane Catastrophe Fund industry limit of $16 billion (estimated for 2007), allowing them to lower rates.
• The bill creates Temporary Emergency Additional Coverage Options (TEACO) within the Florida Hurricane Catastrophe Fund (FHCF), which offers insurers additional FHCF coverage by selecting their share of industry retention level of $3 billion, $4 billion or $5 billion (compared to the $6 billion retention estimated for 2007) for 2007, 2008, and 2009.
• The bill provides an additional amount of FHCF coverage of up to $10 million dollars that insurers may purchase at a premium of 50 percent of the additional reimbursement coverage provided (i.e. $5 million premium for $10 million coverage). The ability to purchase the coverage option expires May 31, 2008.
• The bill repeals the 25 percent rapid cash buildup factor for FHCF premiums, which will translate into immediate rate savings for Florida property owners.
• The bill requires all residential property insurers make a rate filing with the Office of Insurance Regulation which shows how the expanded FHCF coverage results in savings or reduction in loss exposure to the insurer.
Citizens Property Insurance Corporation (“Citizens”)
• The legislation reverses the rate increase that took effect January 1, 2007. It requires Citizens to provide full rebates to homeowners who have paid this rate.
• The legislation deletes the requirement that Citizens charge rates sufficient to purchase reinsurance for each of its three accounts. This is important because Citizens Property Insurance is not required to purchase reinsurance, but had been charging as though it did purchase reinsurance, and was passing those fictitious costs along to Floridians.
• The bill deletes the requirement that Citizens’ rates be non-competitive and no lower than the top 20 insurers. However, rates charged by citizens must still not be excessive, inadequate, or unfairly discriminatory.
• The bill delays until 2008 the requirement that Citizens impose up to a 10 percent premium assessment on all nonhomestead policyholders.
• The legislation requires Citizens to exempt policies from the 10-day waiting period for a real estate closing.
• As of January 1, 2009, to qualify for Citizens, properties over 500 to 2,500 feet landward of the Coastal Construction Control Line must be built to “Code-Plus” building standards developed by the Florida Building Commission, ensuring that those homes will be better prepared for damaging storms.
• The bill deletes provisions making nonhomestead policyholders ineligible for Citizens coverage effective March 1, 2007.
• The bill provides that if a policyholder is offered coverage from an insurer at the insurer’s approved rate, then that policyholder is not eligible for a Citizens’ policy, unless the insurer’s premium is more than 25 percent greater than the premium for comparable coverage provided by Citizens.
• It also authorizes Citizens to provide commercial (business) coverage statewide.
• In addition, the bill authorizes Citizens to write multiperil policies (as well as wind-only policies) in the areas eligible for coverage in the High Risk Account. If approved by the Financial Services Commission and the Legislative Budget Commission.
Coverage Exclusions; Deductibles; Payment of Premium
• The legislation requires insurers to make available to policyholders the option to exclude windstorm coverage, if the policyholder personally writes a statement that he/she does not want such coverage and provides documentation of approval by any mortgage or lien holder. This will reduce the risk for insurers, enabling them to offer lower rates.
• It eliminates maximum allowable deductibles, but requires a written statement by the policyholder and approval by a mortgage or lien holder.
• The bill prohibits property insurers from denying coverage based solely on the age of the structure and requires consideration of the structure’s wind resistance.
• It also requires insurers to offer the option to exclude coverage for contents, if the policyholder personally writes a statement that he or she does not want such coverage.
• The bill requires insurers to allow personal lines residential and commercial policyholders to pay premiums on a quarterly or semiannual installment plan.
Premium Notice
• The bill requires insurers to specify on the renewal premium notice:
o The amount of an assessment by the Florida Hurricane Catastrophe Fund, Citizens Property Insurance Corporation, and the Florida Insurance Guaranty Association, and the full name of the assessing authority; and,
o The amount a premium has changed due to a change in rate or coverage.
Hurricane Mitigation
• The bill requires the Financial Services Commission to develop by rule a uniform mitigation verification inspection form that must be used by all insurers to factor discounts for wind insurance.
• The bill makes the following changes to grant programs within the Florida Comprehensive Hurricane Damage Mitigation Program:
o Low income homeowners are exempt from the requirement to have a dwelling with an “insured value” of $500,000 or less (in other words, the home does not have to be insured).
o Grants may be used on previously inspected existing structures or a site built single family dwelling that is under construction to replace a homestead damaged or destroyed by a hurricane.
o Low-income homeowners may use grant funding to repair existing structures if the repairs are mitigation improvements.
• The bill requires the Financial Services Commission to develop a uniform home grading scale to grade a home’s ability to withstand the wind-load from a hurricane.
• The bill requires every licensed general lines insurance agent and consumer representative to complete one hour of continuing education every two years regarding premium discounts available on property insurance policies based on hurricane mitigation options and how to obtain discounts.
• It requires insurers to provide notice of combinations of discounts, credits, rate differentials, or reductions in deductibles, for windstorm mitigation.
• It requires insurers to offer deductible reductions for mitigation measures.
Florida Building Code
• It eliminates the “Panhandle exemption,” under which homes in the Florida Panhandle were held to fewer safeguards against storms.
• It requires the Florida Building Commission to develop voluntary “Code-Plus” guidelines for homeowners who wish to build their homes at a higher standard.
Insurance Consumer Advocate
• It requires the Insurance Consumer Advocate to provide an annual report card on insurance companies using a letter grade scale established by the Financial Services Commission.
Self-Insurance Funds; Bonding Authority
• The legislation allows hospitals, local governments and Community Associations to form risk pools and self-insurance funds.
Catastrophic Ground Cover Collapse Coverage; Sinkholes
• The bill requires property insurers to provide coverage for sinkholes.
• Under this legislation insurers must continue to make sinkhole coverage available for an appropriate additional premium. If Insurers offer policies that exclude coverage for sinkhole losses, the company must provide written notice to the policyholder in 14-point type.
“Cherry Picking”
• Under this bill, if a company provides private passenger automobile insurance in Florida and offers homeowners policies in other states, they will be required to offer homeowner’s coverage in Florida.
Tuesday, January 16, 2007
Legislature to Convene in Special Session on Property Insurance
Today, Tuesday January 16, 2007, the Florida Legislature will convene in a Special Session to address the property insurance crisis currently facing Florida's homeowners. As always, Mike welcomes your input on this issue.
Thursday, January 11, 2007
More On Property Taxes
We welcome your suggestions on this issue. Read AP Story Below
Senate leader: Property tax could go on ballot this year
By BILL KACZOR
Associated Press Writer
Advertisement
TALLAHASSEE, Fla. (AP) -- Lawmakers could put a property tax relief measure before voters as early as this fall, Senate Finance and Taxation Committee Chairman Mike Haridopolos said Thursday.
Legislators have been flooded with complaints about inequities and rising property taxes, spurred largely by sharp increases in real estate values.
"There is a real hunger for some commonsense help," Haridopolos, R-Indialantic, said after his committee received an update on reform efforts. "I think this is a big enough issue to hold a separate election."
If the Legislature did that, it would beat the Taxation and Budget Reform Commission to the punch.
The Florida Constitution requires such a commission to meet once every 20 years, starting in 2007, to review the state's budgetary, revenue and spending procedures. The commission, yet to be appointed, also can put amendments dealing with those issues on the ballot the following election year, in this case 2008.
It would take a three-fourths vote in the House and Senate to call a special election to amend the constitution this year, Haridopolos said. Amendments offered at regular elections take a three-fifths vote.
Complaints about inequities have centered on the Save Our Homes Amendment that voters adopted in 1992. It limits property tax increases on homes occupied by their owners to 3 percent annually, but homeowners who move lose their accumulated benefits. Many, as a result, have felt locked in to their existing homes.
A solution known as portability would let them take some or all of their Save Our Homes benefits with them when their move.
Local government officials have resisted that idea for fear of losing revenue, but a Department of Revenue study presented to the committee predicts tax rolls would be reduced only 0.7 percent in 2008 and 2.4 percent in 2012 by a statewide portability provision.
The report cheered portability advocates.
"In the four years I've handled this issue the clarion call from local governments has been if you somehow allow portability we'd literally bankrupt local government," Haridopolos said.
Sen. Jeff Atwater, R-North Palm Beach, argued the effect would be even less than the Revenue Department estimated because home sales would increase once homeowners no longer felt locked in.
The Legislature's Office of Economic and Demographic Research has commissioned a property tax study that will include that factor and others.
Haridopolos said the Legislature could focus just on portability although he advocates a comprehensive approach including tax relief, not just reform.
"We might have to look at actually putting an overall revenue cap on local and state government," Haridopolos said. "Everything is on the table."
The Legislature will gather public comment on the property tax issue during a series of town hall meetings that begin Jan. 25 in Panama City.
© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.
http://hosted.ap.org/dynamic/stories/F/FL_XGR_PROPERTY_TAX_FLOL-?SITE=FLTAM&SECTION=US
Senate leader: Property tax could go on ballot this year
By BILL KACZOR
Associated Press Writer
Advertisement
TALLAHASSEE, Fla. (AP) -- Lawmakers could put a property tax relief measure before voters as early as this fall, Senate Finance and Taxation Committee Chairman Mike Haridopolos said Thursday.
Legislators have been flooded with complaints about inequities and rising property taxes, spurred largely by sharp increases in real estate values.
"There is a real hunger for some commonsense help," Haridopolos, R-Indialantic, said after his committee received an update on reform efforts. "I think this is a big enough issue to hold a separate election."
If the Legislature did that, it would beat the Taxation and Budget Reform Commission to the punch.
The Florida Constitution requires such a commission to meet once every 20 years, starting in 2007, to review the state's budgetary, revenue and spending procedures. The commission, yet to be appointed, also can put amendments dealing with those issues on the ballot the following election year, in this case 2008.
It would take a three-fourths vote in the House and Senate to call a special election to amend the constitution this year, Haridopolos said. Amendments offered at regular elections take a three-fifths vote.
Complaints about inequities have centered on the Save Our Homes Amendment that voters adopted in 1992. It limits property tax increases on homes occupied by their owners to 3 percent annually, but homeowners who move lose their accumulated benefits. Many, as a result, have felt locked in to their existing homes.
A solution known as portability would let them take some or all of their Save Our Homes benefits with them when their move.
Local government officials have resisted that idea for fear of losing revenue, but a Department of Revenue study presented to the committee predicts tax rolls would be reduced only 0.7 percent in 2008 and 2.4 percent in 2012 by a statewide portability provision.
The report cheered portability advocates.
"In the four years I've handled this issue the clarion call from local governments has been if you somehow allow portability we'd literally bankrupt local government," Haridopolos said.
Sen. Jeff Atwater, R-North Palm Beach, argued the effect would be even less than the Revenue Department estimated because home sales would increase once homeowners no longer felt locked in.
The Legislature's Office of Economic and Demographic Research has commissioned a property tax study that will include that factor and others.
Haridopolos said the Legislature could focus just on portability although he advocates a comprehensive approach including tax relief, not just reform.
"We might have to look at actually putting an overall revenue cap on local and state government," Haridopolos said. "Everything is on the table."
The Legislature will gather public comment on the property tax issue during a series of town hall meetings that begin Jan. 25 in Panama City.
© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.
http://hosted.ap.org/dynamic/stories/F/FL_XGR_PROPERTY_TAX_FLOL-?SITE=FLTAM&SECTION=US
Wednesday, January 10, 2007
Mike Announces Property Tax Town Hall Meetings
In an effort to bring comprehensive tax relief to all Floridians, Mike announced that the Senate and House will hold a series of town hall meetings across the state to hear directly from the voters.
“This issue affects all Floridians. Homeowners, renters, first-time buyers and business owners across our state are all touched by this issue, and it is time that we hear from them directly,” said Senator Haridopolos. “Not every concerned citizen can come to the Legislature – so we are bringing the Legislature to them. Our job is to do the people’s work, and we are looking forward to traveling the state and working with everyday Floridians on this issue.”
According to Governor Bush’s Property Tax Reform Committee, government revenues have grown by 80%, city government revenues by 98% and special taxing districts by 110%. In the same time, the data shows that population and inflation grew by 32% and family income (CPI + population) by just 39%. Read the AP story below.
http://www.sun-sentinel.com/news/local/palmbeach/sfl-pnfproperty09jan09,0,4431551.story?coll=sfla-news-palm
“This issue affects all Floridians. Homeowners, renters, first-time buyers and business owners across our state are all touched by this issue, and it is time that we hear from them directly,” said Senator Haridopolos. “Not every concerned citizen can come to the Legislature – so we are bringing the Legislature to them. Our job is to do the people’s work, and we are looking forward to traveling the state and working with everyday Floridians on this issue.”
According to Governor Bush’s Property Tax Reform Committee, government revenues have grown by 80%, city government revenues by 98% and special taxing districts by 110%. In the same time, the data shows that population and inflation grew by 32% and family income (CPI + population) by just 39%. Read the AP story below.
http://www.sun-sentinel.com/news/local/palmbeach/sfl-pnfproperty09jan09,0,4431551.story?coll=sfla-news-palm
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