WEST PALM BEACH, Fla. — Florida lawmakers are moving along with a bill that would bring some insurance changes to those with second vacation homes insured by Citizens Insurance.
SB 1716 would allow take-out offers to be made by surplus line insurers, and it still has more legislative hurdles.
"The overall goal of this bill is to limit the overall exposure to Florida of the Citizens large policy count," state Sen. Jim Boyd, R-Bradenton, said.
Surplus line carriers are regulated differently in Florida than traditional insurers.
Mark Friedlander, of the Insurance Information Institute, said surplus lines don't need approval on rates, but a separate state office regulates them.
"In Florida, a surplus lines carrier does not have the backstop of the standard admitted carriers, meaning they can't tap into the Florida Hurricane Catastrophe Fund," he said.
That means if the company goes insolvent, the state would not back up claims.
It was a question that West Palm Beach Sen. Bobby Powell brought up in the Senate committee meeting.
"What I can tell you is most of the surplus lines carriers that I'm familiar with and in my day job, we do business with, have in many cases a larger surplus than many domestic carriers," Boyd said.
It's estimated there are somewhere between 45,000 and 60,000 second homes under Citizens policies in Florida.
If you have any questions or issues with homeowners insurance, email Matt Sczesny at matt.sczesny@wptv.com.