Resolution 143-2006
Commissioner Rice
RESOLUTION NO. 143-2006
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY SETTING FORTH
ACTIONS TO BE TAKEN TO ADDRESS WINDSTORM
INSURANCE RATES.
WHEREAS, 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
WHEREAS, the cost-of-living in Monroe County is the highest in the State
of Florida; and
WHEREAS, 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
WHEREAS, 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
windstorm premiums much less the substantial increase proposed by Citizen's
Property Insurance, and may have to consider moving from the Keys; and
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, the dramatic increases in windstorm insurance premiums will
result in fewer 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, state and federal government taxpayers; and
WHEREAS, the history of the last two years reflects that the entire state of
Florida is vulnerable to windstorm damages, especially those parts of the state
where hurricane shutters and other storm-proofing techniques are not in
common practice; and
WHEREAS, 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.
3: .....,.
PASSED AND ADOPTED by the Board of County Commission@s j%f ~nr~
County, Florida, at a meeting of said Board held on the fifteenth~f ~c~
A.D. 2006. ;:;~-< ;:g C30
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("- - -or ...... 0
Mayor Charles "Sonny" McCoy Yes ~;';fi J:a ~
Mayor Pro Tern Murray Nelson Yes ;;:-I;:~ =x ;:::..
Commissioner George Neugent Yes!; ~ 'e g
Commissioner David Rice Yes. ~?5
Commissioner Dixie Spehar Yes
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BOARD OF COUNTY COMMISSIONERS
OF MONROE C TY, FLORIDA
By: