Hurricane to-do list still long, Crist says
As he OKs insurance bill, he says much work remains.
The Orlando Sentinel

Governor. Charlie Crist signed a sweeping insurance-reform bill into law Thursday -- but even he agreed there's a lot of work left to be done.
"It is just the beginning -- let's understand that," Crist said. "We need to remain vigilant about this issue."

The 167-page bill, the product of a seven-day special session, promises property-insurance reductions averaging 22 percent statewide, in return for Florida taxpayers shouldering a greater share of the risk that a catastrophic hurricane will sweep through the state.
But lawmakers and the populist-sounding Crist, eager to provide short-term relief to unhappy homeowners, overlooked -- for now -- longer-term proposals to reduce hurricane damage.
Absent from the package was any attempt to restrict new coastal development or detailed plans to reward residents who take steps to protect their homes from hurricane damage.
Both are considered crucial to controlling insurance costs. But both are expensive.
"The secret to long-term relief is hardening homes against storms and building wisely," said Senate Majority Leader Dan Webster, R-Winter Garden. "That's what'll keep rates down and bring insurance companies back."

The legislation attempts to lower premiums through two key provisions: doubling the Florida Hurricane Catastrophe Fund -- the account the state uses to sell discounted backup insurance to private carriers -- and allowing a government-run insurer to compete in some ways with private companies.
The plan insulates insurers from financial ruin but puts policyholders on the hook if Florida is hit with a major hurricane. Some lawmakers winced at parts of the package, but they felt compelled to do something.

The plan promised inspections and financial help for homeowners who wanted to fortify their houses with hurricane shutters or other protections. Those who hardened their homes would get insurance discounts. Some research has shown storm damage can be reduced up to 75 percent if a home is properly protected.

But the inspection program could not keep up with demand and was suspended for a time late last year.

Also, there were complaints about the rules governing discounts. Those rules will be rewritten before the start of the regular legislative session.

Florida has for years argued for the creation of a national catastrophe fund. Only the federal government, proponents argue, has the financial muscle to handle the biggest storms.

Out-of-state lawmakers aren't convinced, and the proposal faces a dim future.

As an alternative, Sink, the state's CFO, has suggested a regional super fund pulling together states on the Gulf and East coasts.

The wages of going coastal

While lawmakers from other states balk at bailing out Florida, officials here have generally responded similarly to one surefire way to reduce hurricane damage: strictly limit coastal development.

In fact, this week as legislators celebrated the end of the special session, residents of a Palm Beach County mobile-home park partied for a different reason.

Many people in Briny Breezes will become rich thanks to a developer who has agreed to pay more than $500 million for the 43-acre community tucked between the Atlantic Ocean and the Intracoastal Waterway.

Historically, there has been little interest among state lawmakers to restrict -- much less forbid -- coastal development. They do not want to be seen as attacking property rights, especially along the heavily populated Atlantic and Gulf coasts -- two areas that drive much of Florida's economy.

That worries Max Mayfield, former director of the National Hurricane Center. Early this month, just before he retired, Mayfield issued a warning about coastal development, reminding officials it carries with it enormous risk.

"One of these days, we're going to get a strong enough hurricane in a populated area that is going to result in a mega-disaster worse than Katrina," he said. "Nobody wants to hear doom and gloom, but it's true."

Jason Garcia of the Tallahassee bureau contributed to this report. Jim Stratton can be reached at jstratton@orlandosentinel.com or 407-420-5379.