Insurance Figures in Florida Gubernatorial Race

Home insurance and escalating premiums are playing a key role in the Florida gubernatorial election where Democrat Jim Davis, the Tampa congressman, currently lags behind Republican Charlie Crist.

Davis, speaking at a condominium community in Boca Raton heavily damaged by Hurricane Wilma last year, promised to cut premiums on windstorm insurance by as much as forty percent.

His plan, based on proposals put forth by Democrats in the Florida legislature during the last year, would turn the state into a depository of money currently spent on reinsurance, policies bought by private insurers from other insurers to distribute the potential risk of claims. That cost is passed on to consumers. Sending money to a state fund, however, makes it tax free, eliminates the profit, and reduces overhead.

During years when the state suffers little storm damage, the money would sit in an interest-bearing account which would help to generate even greater premium cuts.

"We will never again allow these insurance companies to profit at our expense and keep our money when we need it here in Florida to save for the next rainy day," Davis said. "These insurance companies have charged us outlandish prices, telling us 'because the storms are coming.' Well, the storms have not come . . . But are we going to get our money back? Of course not."

Republicans referred to the Davis proposal as "smoke and mirrors" and a "false promise." In addition, many Republicans question whether the proposal is even constitutional in the State of Florida.