Resolution 146-2006
Commissioner Rice
RESOLUTION NO. 146-2006
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
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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. The Board of County Commissioners shall hire an independent
actuary to review Citizens Property Insurance rate filing for Monroe County and
to hire legal counselor other appropriate professional consultant review
current legislation regarding Citizens Property Insurance to determine what
affect it would have on homesteaded property and non-homesteaded property
being used as affordable housing in Monroe County.
2. The Board of County Commissioners staff shall work with FIRM to
coordinate FIRM's activities with the Board of County Commissioners.
3. This resolution shall become effective on date of adoption.
PASSED AND ADOPTED by the Board of County Commission<:Es of l\1Qnroe
County, Florida, at a meeting of said Board held on the fifteenth !aYil>f "rc~
A.D. 2006. ~n~ ~ lT1
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Mayor Charles "Sonny" McCoy Yes ~:'~'t;: 35
Mayor Pro Tern Murray Nelson Yes ~?=I~: :x:- '7J
Commissioner George Neugent Yes :<g~ :x ~
Commissioner David Rice Yes ~ ~ '!P g
Commissioner Dixie Spehar Yes!> == 0
, . BOARD OF COUN
\:1~al) OF MONROE CO
,'Atte's..t.: DAN~'Clerk .
a By.
By.'h"~
,;'
Deputy Clerk
COMMISSIONERS
IT, FLORIDA
an
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