State Freezes Property Insurance Rates After Michael

October 15, 2018

Gov. Rick Scott on Sunday directed the state’s top insurance regulator to freeze any potential property-insurance rate increases for 90 days as homeowners and businesspeople grapple with massive damage from Hurricane Michael.

Scott also directed Insurance Commissioner David Altmaier to require rescinding for 90 days all policy non-renewals or cancellations that had been issued in the days leading up to Michael to give policyholders more time to find coverage. In another move, insurance policyholders will be given an extra 90 days to provide required information to insurers.

It was not immediately clear how many policyholders could be affected by the directives. But state Chief Financial Officer Jimmy Patronis, in a statement released by Scott’s office, pointed to the massive damage caused by Michael, which made landfall Wednesday in Mexico Beach as a Category 4 storm and pounded Panama City and other areas of the Panhandle and the state’s Big Bend.

“Entire communities have been wiped off the map,” Patronis, a Panama City native, said in the statement. “I can’t say this enough: The damage is catastrophic. As our neighbors and communities assess the damage and start recovering, the last thing they need to worry about is if their insurance coverage will be dropped for non-payment. Our focus is saving lives, restoring power and repairing communications system. I’m calling on insurance companies to keep that at the front of their minds and not take advantage of this disaster.”

It remains too early to pinpoint the amount of damage caused by Michael. But as an indication, the Property Casualty Insurers Association of America issued a preliminary estimate Thursday that said insured losses could total $2 billion to $4.5 billion.

The state-backed Citizens Property Insurance Corp. has set up temporary centers in Panama City and Tallahassee to help policyholders with claims. The centers will operate from 7 a.m. to 7 p.m. at a Sam’s Club at 1707 West 23rd St. in Panama City, and at a Walmart Supercenter at 4021 Lagniappe Way in Tallahassee.

Insurance claims will be part of the recovery from Michael that will take months to play out.

Shorter term, state and local officials are focused on issues such as restoring electricity, with utility crews converging on Northwest Florida from various parts of the country. As of noon Sunday, 191,361 utility customers lacked power, according to Scott’s office.

Gulf Power, which serves hard-hit areas including Bay County, released a schedule Sunday that showed gradual power restoration expected in its service territory over the next 10 days.

Areas of Panama City Beach, for example, were expected to be restored Sunday and Monday, but downtown Panama City and communities such as Callaway and Lynn Haven are estimated to be restored by Oct. 24. Areas of Washington, Jackson and Holmes counties are gradually expected to be restored by Friday.

“We know that our customers are counting on us, so they can begin rebuilding their lives,” Stan Connally, chairman, CEO and president of the Pensacola-based utility said in a prepared statement. “We are working safely and aggressively around the clock to get the lights back on.”

by Jim Saunders, The News Service of Florida

Comments

4 Responses to “State Freezes Property Insurance Rates After Michael”

  1. owner on October 15th, 2018 3:43 pm

    I didn’t know the state could control insurance prices. The cheapest route, in the long run, is to buy only what you can afford to own and insure yourself. Tell the insurance companies to go pound sand.

  2. Robinhood on October 15th, 2018 3:43 pm

    Just wait, They (Insurance Companies) will want the CITIZENS of Florida who were not affected at all by this storm to pay additional funds on their Insurance Premiums for those that chose to live on the beach and that is a SHAME and WRONG. This should not be tolerated my the Citizens of Florida. it IS NOT up to the Little Man to help out the Big Man who chose to live on SAND … STUPID is as STUPID does and they are STUPID !!!!!!!

    Again, Insurance Companies tell the “Little Man” Being that is “KNOWN HAZARD” they will ONLY repair / replace peoples properties ONE TIME ….. BUT …. They will continue to repair / replace people who choose to live on the KNOWN HAZARD called a Beach over and over and over again at the “Little Mans” expense. Those people who choose to live on the KNOWN HAZARD (BEACH) should have to get their own insurance without the help of citizens who chose not to live on the beach.

  3. anne 1of2 on October 15th, 2018 11:29 am

    This is an old (2015) estimate of the 25 top insurance companies, worth 558 billion with profits up for the past 3 years and we are supposed to worry about their paying out between 2 and 4.5 billion? Scott made the right call this time. They have no problem raising our rates whenever the mood strikes.

  4. retired on October 15th, 2018 9:06 am

    Wait for about 6 months the rates will go up and not come down. The insurance company’s don’t have any major loses for 10 to 14 years and cry they are losing money. They buy insurance for other companies for this reason. Then they want to tell you this is not covered, that is not covered. pretty soon the only thing covered will be the paper the policy is written on

Written by William Reynolds · Filed Under News