Today Governor Crist issued an emergency order that stops property insurance companies from cancelling policies, rejecting renewals of policies, and raising their premiums. Apparently he was afraid that the companies that issue policies in Florida would try to get around the new legislation that was created by the Florida Legislature and signed into law by the Governor last week. Wonder what would make him think that they would do that??? (I am being sarcastic there) Evidently State Farm was already thinking of rejecting renewals for 40,000 homeowners near the coast.
Again the insurance companies are pleading poverty and saying they cannot handle the hurricanes. However, we have had at least a couple of years with no damage at all, and still they have been raising their premiums like crazy. Mine went up over 100% in just one year! Sorry insurance companies, do not try using Hurricane Katrina and New Orleans as an excuse. Remember you have your own little companies here in Florida that you use to prove your case for raising rates. Not fair to then use an out-of-state storm as evidence. Cannot have it both ways guys.
This order by the Governor will be effective for 90 days, or until such time that the insurance commisioner and his crew decide what rates will be under the recently passed legislation. This law will also permit the Governor to freeze things again in June, just when the hurricane season is about to begin.
It will be interesting to see how things go from here. At the very least, it appears that our elected officials have finally come to realize that the citizens of Florida are at the end of their ropes!