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Home My WebLink AboutR-1998-055 RESOLUTION NO. 55-98 A RESOLUTION OF THE CITY OF DANIA, FLORIDA URGING THE SWIFT PASSAGE OF SENATE BILL 1478 AND HOUSE BILL 3827 RELATING TO THE "HOMEOWNERS' PROTECTION ACT" PROPOSAL TO RELIEVE PREMIUM INCREASES AND STABILIZE THE INSURANCE MARKET AS A RESULT OF HURRICANE ANDREW; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, in August 1992, Hurricane Andrew viciously hit South Florida and became the costliest catastrophe in the historyof the United States, causing $30 billion in property damage, including $16 billion of insured losses; and I WHEREAS, an estimated 80,000 single-family homes, mobile homes and apartments or condominium units were severely damaged or destroyed, and at least 180,000 people were left homeless; and WHEREAS, many residents subsequently lost the private-market insurance coverage they will need to fully protect their homes and personal belongings in the event of another storm; and WHEREAS, six years later, many homeowners throughout Florida still do not have access to affordable, private insurance coverage — despite the many measures enacted by the state since Andrew to help reduce the industry's exposure to bankrupting losses, including creation of the Florida Hurricane Catastrophe Fund; and WHEREAS, this continuing lack of competition in the insurance marketplace of certain parts of the state is wreaking economic havoc on many of our communities; and WHEREAS, the insurance industry, under cloak of Andrew, still is pushing for higher and higher premiums; NOW,THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA, FLORIDA: I 1 RESOLUTION NO. 55-98 Section 1. That the City Commission of the City of Dania supports the swift passage of Senate Bill 1478 and House Bill 3827 proposed in the "Homeowners' Protection Act" to afford el stabilize the insurance market. lief from p I homeowners re premium increases and to h Section 2. That this resolution shall be in force and take effect immediately upon its �I passed and adopted. PASSED AND ADOPTED THIS 14T" DAY OF APRIL 11999i18. JIM CALI, MAYOR ATT i MARIE JABALEE, CITY CLERK APPROVED AS TO FORM AND CORRECTNESS: TH MA ANSBRO, CITY ATTORNEY i 2 RESOLUTION NO. 55-98 I r L u i * \ j ' Florida Department of Insurance r AUTOMATED FAX GATEWAY Friday, March 13, 1998 j ? SUBJECT: Homeowners' Protection Act Resolution i j To: Dania Mayor James Cali Fax: 9549212604 FROM: Bill Nelson Fax: (850) 468-6581 PHONE: (850) 413-4930 This Fax is 4 pages, including this cover page. MAR-13-1998 22:39 (050) 488-6581 P.01 I i RESOLUTION of WHEREAS,in August 1992, Hurricane Andrew viciously hit South Florida and became file costliest catastrophe in the hislory of the United States,causing$30 billion in property damage, including$16 billion of insured losses;and, WHEREAS,an estimated 80,000 single-family hones,mobile homes and apartments or condominium units were severely damaged or destroyed,and at leas[ 180,000 people were left homeless;and, 'WHEREAS,marry residents subsequently lost the private-market hrsurance coverage they will nerd to fully protect their homes and personal belongings in the event of another storm;and, WHEREAS,six years later,many homeowners throughout Florida still do not have access to affordable,private insurance coverage -- despite the many measures enacted by the state since Andrew to help reduce the industry's exposure to bankrupting losses,including creation of the Florida Hurricane Catastrophe Fund;and, WHEREAS,this continuing lack of competition in the insurance marketplace of certain parts of the slate is wreaking economic havoc em many of our communities;and, 1 WHEREAS,the insurance industry, under cloak of Andrew,still is pushing for higher and higher premiums. NOW,THEREFORE,BE IT RESOLVED THAT, we,the undersigned,as representatives of our organizations many members,do hereby request swill passage of Senate,Bill 1478 and House Bill 3927. j IN TESTIMONY WHEREOF,we have hereunto subscribed our names on this fire th day of 1998. By: _-._._ By' . - - - - - -- - - - - - - By: _ By: J MAR-0-1998 22:41 (850) 4BB-6501 P.04 • [IF.TREASURER OFT!IF.STATE,OF FLORIDA BILL NELSON March 13, 1998 Dear Interested Mayors, Commissioners& City Managers: Over the course of the past year,many or your constituents have contacted one of our offices either by mail or phone expressing their concerns with the homeowners insurance market in Florida. I share those concerns. The Legislature and I have worked closely to successfully rebuild and stabilize the market. IIowever,the availability of coverage remains a problem in some cities and the cost is a content throughout the state. This lack of competition in the insurance marketplace continues to be a burden on many local economics,affecting the c instruction,real estate and banking industries. Today, Florida stands at a crossroads. We either finish rebuilding the market,giving consumers and communities the relief and protection they need,or allow the industry to maintain its grip on homeowners. The choice is easy. That is why I have submitted a propo&d to the Florida Legislature that will help relieve the premium increases and further stabilize the insurance market The bill has bipartisan sponsorship in the Florida Home of Reproscntalives and the Florida Scntatc. The proposal, The "Homeowners' Protoction Act"does the following: Rolls back homeowners'instmmnce rates by 15 percent; Provides loyal policyholders protection against unfair cancellation; Allows homebuyers who move to Like their insurance with then; Assures homeowners fidl discounts for safeguards like storm shutters; Reduces extra charges policyholders might pace from the mega-.%Ionm; Requires private insurance companies to write more policies;grid Puts rate decisions tack in the han&s of the Insurance Commissioner; �a MAR-13-1998 22:39 (850) 4BB-6581 P.02 w PAGE Two PROPERTY.I.fR Attached is a proposed resolution for your consideration. I encourage you to adopt this resolution at your next meeting,since this bill is aheady under review by legislative committees. Upon adoption,I would also ask that you send copies of the resolution to the Tallahassee office of each member of your local legislative delegation. If you or your colleagues require additional uunteiiahs or have any questions,please contact Bryan Gulley at(850)413-4930. Also,we would appreciate it if you will inform us of any action you take. I look forward to your joining me in this effort to return competition to the insurance market in Florida and give consumers and communities the rate relief they deserve. i Sincerely, I BN/PM/bfg I i MAR-13-1998 22:40 (850) 40B-6581 P.03 i I - f� I t