Citizens insurance hikes win approval in Florida Legislature

The last day of the regular session also saw passage of legislation affecting private property insurance rates and companies that offer insurance of last resort to high-risk businesses and homeowners.

The Citizens premium legislation (HB1495/SB1950) sets a so-called ''glide path'' of gradual annual premium increases aimed at reducing Florida's financial risk by boosting cash assets and decreasing the liability in Florida's Hurricane Catastrophe Fund.

''Right now we're the Titanic heading into an iceberg,'' said House sponsor Rep. Bryan Nelson, R-Apopka. ``This glide path is starting to turn this ship in the right direction.''

The fund is $13 billion short of what would be needed to cover devastating property damage likely to come from a major hurricane, thanks in part to the global recession and tightened credit markets.