Editorial: Good ideas to lower insurance rates

OUR POSITION: There are some good ideas being floated by lawmakers in Tallahassee that might lower homeowners' insurance rates but the likelihood of the bills making it into law is the question.

People may get the impression our Legislature does very little to help those struggling with the economy or businesses hamstrung by too many regulations.

Judging by the laws that do get passed, there may be some justification for that impression. But, if you see every bill lawmakers work on and strive to get passed, it may open some eyes to how much actually gets done in Tallahassee each year — or at least how much time and effort goes into trying to make our lives a little more comfortable.

Let's take homeowners insurance as an example.

For the average Floridian, there may not be a more volatile subject. Lowering rates for homeowners insurance is one of the top, and usually the top, priorities for every person in the state who owns a home.

Lawmakers know that. And even though they have worked to pass legislation for two straight years to get a handle on the problem — and to draw more insurers and competition to the state — they are still at it. A good number of bills are being drawn up that could go a long way toward lowering those rates.

Some of the bills are just good common sense. Some are more complicated. And some are being proposed by Democrats — and that means that have less of a chance to make it into law — but there are exceptions.

Rep. Jervonte Edmonds, D-West Palm Beach, has drawn up HB 41 called Mortgage Loans and Insurance Payments Grand Program.

It involves a state-funded program to give homeowners a one-time grant to help pay for their insurance or mortgage. The grants would be $1,500 for most and $2,500 for those over the age of 65. You could even apply for a grant to pay your car insurance.

There are thousands who could use this economic Band-aid but the problem, and the likely reason it may never see the light of day, is the fact it is a one-time offer. That's not to mention the cost of the program which could be significant. Still, it is a worthy idea for people who find themselves strapped to pay their homeowners insurance.

Edmonds is co-sponsor of at least two other bills that aim to help homeowners.

One. SB 102/HB 1017 would require the state's insurance commissioner to be elected and would limit how insurers can deny claims along with requiring insurers to reduce rates when the Legislature passes laws to reform the industry. Another, HB 329/SB 860, would offer money to prevent homeowners from having their homes foreclosed on or their utilities cut off when they can't pay.

Rep. Jim Mooney, R-Islamorada and Sen. Ana Maria Rodriguez, R-Doral want to increase the cap on the value of homes that Citizens Property Insurance can cover in Monroe and Miami-Dade counties up to $1.5 million and cap rate increases at 10% a year.

A bill that is getting a lot of attention is SB 802/HB 655 that would allow homeowners to insure only the unpaid principal on their home. That could lower premiums but it could end up costing homeowners a considerable amount if the home is badly damaged or a total loss.

There are a number of other bills taking aim at high homeowners insurance premiums. We can't say lawmakers aren't trying.