Item M17
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: Wed.. March 15. 2006
Division: BOCC
Bulk Item: Yes
No XX
Department: Commissioner David Rice. District 4
Staff Contact Person: Tamara Lundstrom
AGENDA ITEM WORDING: Approval of Resolution regarding Monroe County Pilot Program
for windstonn insurance.
ITEM BACKGROUND:
PREVIOUS RELEVANT DOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATIONS:
TOTAL COST:
BUDGETED: Yes
No
COST TO COUNTY:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH_ Year
APPROVED BY: County Auy _ OMBlPurchasing _ Risk Management _
DIVISION DIRECTOR APPROVAL:
;Da>>id fl. 9lke
(David P. Rice, Commissioner)
OOCUMENTA TION:
Included XX
Not Required_
DISPOSITION:
AGENDA ITEM # r--). I c'J
Revised 2/05
Co..._I."~OD.r Rice
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COIllll88101lBR8 01' MODOE COUJITY SBT1'ING J'ORTR
ACTIO.. TO BB TAD. TO ADDRB8& WJ1fD8TORII
IR8URARCE RATES.
WHBRBAS, a group of concerned citizens F.I.R.M. (Fair Insurance Rates
for Monroe County) has brought countywide attention to the fact that there is a
windstorm insurance premium crisis in Monroe County; and
WHBRBAS, the cost-of-living in Monroe County is the highest in the State
of Florida; and
WHBRBAS, a home in Monroe County with an insurable value of
$350.000 in 2005, on average paid $5.747 for windstorm insurance, will in 2006
pay nearly double at $10,539 annually or $878,26 per month for windstorm
coverage after Citizen's Property Insurance proposed rate increase, The net
annual cost of windstorm insurance on the $350,000 home would be in the
range of $17,539 to $28,039. if the deductible of 2% or 5% is included in the
cost of the insurance; and
WBDBA8, a school teacher. law enforcement officer, government
employee, social worker, nurse, fisherman or fIXed-income retiree who owns a
home in the Florida Keys does not have sufficient income to pay the current
v.d.ndstorm premiums much less the substantial increase proposed by Citizen's
Property Insurance, and may have to consider moving from the Keys; and
WBBRBAS, there is an affordable housing crisis in the Keys and a
shortage of affordable rental housing, and any increase in windstorm premiums
no doubt will be passed-on by landlords to their tenants resulting in even higher
residential rental rates; and
WHBREAS, the building codes in Monroe County were for many years
much more stringent than in other parts of the State and consideration of the
heightened building code standards should be incorporated and heavily
weighted in the calculation of windstorm rates; and
WHBRBA8t the deductibles on windstorm policies are so high the
homeowners generally are unable:: to make claims for windstorm damage or to
pay for windstorm repairs, thereby making windstorm policies impractical and
unaffordable; and
\VIIBREA8, the dramatic increases in windstorm insurance premiums will
result in fe'o\/eT people purchasing windstorm insurance if they are not required
to have casualty insurance, with the result that catastrophic windstorm damage
to those homes will either not be repaired or in many instances will be repaired
at the expense of local, stale and federal government taxpayers; and
WNRUU, the history of the last two years reflects that the entire state of
Florida is vulnerable to windstonn damages. especially those parts of the state
where hurricane shutters and other storm-proofing techniques are not in
common practice; and
WHBRBAS, the State of Florida has estimated that the State has and will
receive a "windfall" sales tax revenue in excess of $3 billion from hurricane
rebuilding efforts;
NOW THEREFORE. BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, that:
1. If it is determined that the Monroe County Pilot Program has caused the
unintended consequence of increasing windstorm rates for. Monroe County,
Florida. and that withdrawal from the pilot program is an appropriate remedy,
then the Board of County Commissioners will seek repeal by the Legislature of
the pilot program and, if necessary, retain legal counsel to file a rule challenge to
the rates established under the pilot program. .
2, The Clerk shall send a copy of this resolution to the appropriate State
legislators and legislative leadership.
3. This Resolution shall become effective on the date adopted.
PASSED AND ADOPTED by the Board of County COmmissioners of Monroe
County. Florida, at a meeting of said Board held on the fifteenth day of March,
A.D. 2006.
Mayor Charles "Sonny'" McCoy
Mayor Pro Tern Murray Nelson
Commissioner George Neugent
Commissioner David Rice
Commissioner Dixie Spehar
(Seal)
Attest: DANNY L. KOLHAGE, Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
By: ___,
Deputy Clerk
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