To the Editor:
In 2008 I went on national TV to complain that Florida’s home owner’s insurance rates were outrageous - as outrageous as the healthcare costs that motivated health reform.
All these rates have increased much faster than should be allowed. The rates should be regulated. They must be regulated.
Gov. Rick Scott has not only reduced people’s income but allowed our insurance costs to consume an ever greater slice of our income. Scott’s plan would allow homeowners’ policies to add 25 percent to the cost of homeowners’ insurance for reinsurance, but companies already reinsure their liabilities and include that in the cost of coverage. Since many homeowners’ insurance companies actually use reinsurance companies under the same corporate umbrella, this amounts to triple dipping.
One insurance subsidiary sells home owners and includes the cost of reinsurance in the premium. Another subsidiary in the same company reinsures those policies and charges enough to generate a profit. Now Scott wants to allow them to charge another 25 percent for reinsurance. That is three premiums to the same company for one policy. And each premium is calculated to generate a profit. The initial premium already includes reinsurance.
If you call the Insurance Regulator’s office, they will tell you to contact the legislature. Call your legislator, and they will blame it on the Insurance Regulator. Who is fighting for consumers?
Going uninsured is very risky, but insurance is getting both more expensive and more profitable. We’ve been five years without a hurricane, and rates are still up. Before Hurricane Andrew, my home owner’s insurance was $335; now it is $2,700. This is NOT reasonable and it is getting worse.
Demand change. Call your protest to:
Governor Scott at 1 (850) 488 – 4441
Office of Insurance Regulator at 1 (850) 413-3140
Matt Caldwell, Representative House 73 at 533-2411
Page Kreegel, Representative House 72 at (941) 575-5820
Liz Benacquisto, Senate 27 at 433-6599.
We the people need to tell our elected officials that they are obligated to represent us and not special interest groups.