Washington, DC., Nov 16, 2007 -

The skyrocketing costs of homeowners’ insurance is an issue at the forefront of every Floridian’s mind, including mine.  I am delighted to report that after years of advocacy, urging, and debating, the House of Representatives finally heeded my words and acted to help the great State of Florida. 

As you may know, reinsurance is insurance that insurance companies purchase to spread the risk of the policies they write.  By doing this, insurance companies can offer more policies, thus providing more options to the homeowner at lower costs.  Unfortunately, reinsurance rates have increased dramatically over the years.  In 2002, reinsurance rates accounted for 7-cents of every premium dollar; in 2006, they accounted for 45-cents. 

Three years ago, I introduced a bill that establishes a federal fund to sell reinsurance to states like Florida that established their own state catastrophe reinsurance funds.  The reinsurance sold in both of these funds would be at a much cheaper rate than reinsurance available in the private market – potentially as low as a quarter of the cost.  For three years, I have been urging Congress to consider passage of my bill as part of the solution to Florida’s insurance crisis, just as we passed a federal fund for terrorism reinsurance in the wake of 9/11. 

Finally, on November 8, 2007, the House of Representatives passed H.R. 3355, the Homeowners Defense Act.  Introduced by two of my South Florida colleagues, the bill provided two programs to help stem the cost of homeowners’ insurance.  During debate on the bill, I was successful in adding my federal catastrophe fund as a third program for states.  This is the most comprehensive bill Congress has ever passed to address the property and casualty insurance crisis in Florida. 

The measure now awaits Senate action, and you can be sure I will be working with Senators Martinez and Nelson in that endeavor.  You can help by contacting them yourself and urging swift passage of this bill before next year’s hurricane season approaches.   

No one in Florida, from the panhandle to the Keys, can continue to withstand the economic meltdown our state is experiencing.  Neither H.R. 3355 nor my proposal is the silver bullet for our problems, but they will be an enhancement to the reforms the Florida State lawmakers enacted earlier this year.  As a long-time resident of Florida – and a homeowner – I consider passage of my proposal one of my greatest accomplishments. 

It is an honor and a privilege to serve the people of the 5th District of Florida, and my offices and staff are here to provide you with any assistance you may need.