The Florida Association of Insurance Agents has announced it will study “another avenue” for covering hurricane wind damage in Florida and would like to establish its own “vehicle” to insure windstorm risk, according to a statement by Jeff Grady, president and CEO.
“With insurers cutting their Florida exposure and state-backed Citizens Property Insurance Corp. levying a 6.8 percent assessment on home insurance policies, it’s time that we look for solutions that consider the needs of both insurers and consumers,” Grady said.
FAIA will sponsor the study, led by Jay Newman, a former insurance commissioner in Virginia and the former executive director for Citizens who is now an adjunct professor at Florida State University.
The study will look at whether Florida can create a vehicle to insure its windstorm risk that would be similar to the National Flood Insurance Program, the federally backed program that covers flood damage.
Anyone who buys flood insurance buys that coverage from an insurance agent or from an insurer, and files damage claims through their insurer. But the actual policy comes from the flood insurance program.
FAIA plans to have its study completed in October, and plans to submit a copy to a state task force charged with crafting fixes to the hurricane insurance market, Scott Johnson, executive vice president said.
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