Lawmakers Seeking Insurance Solutions

By  | 

The cost of insurance keeps going up.

One solution suggested by Florida insurance agents is a general tax, perhaps on every property transaction, to pump money into the states catastrophic loss fund.

The bigger the fund and the easier insurance companies can get money from when its losses occur could lower reinsurance costs, and that would lower premiums.

“Those who are buying insurance today in this state are taxed already by a huge assessment,” said Jeff Grady of the Florida Association of Insurance Agents. “Up to 20 percent on those policies, plus a spiraling rate increase from their private carrier.”

Raising the state sales tax by half a penny is another idea being suggested. It would raise almost $2 billion a year for the hurricane fund.

However, the tax idea doesn’t sit well with homeowners like Jim Barger.

“I think that’s a burden that the homeowner has to carry," he said.

Gov. Jeb Bush has never met a tax he likes, but he does say this about insurance.

“We have a serious problem with both commercial and property insurance.”

For now, solutions continue to elude policy makers and higher rate requests keep coming in.