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Outgoing Florida CFO: Inequity in Homeowners Insurance Must Be Addressed

Florida's soon-to-be-former Chief Financial Officer Alex Sink says her state's inequity in homeowners' insurance rates must be addressed. Sink, who leaves office on January 4,...
December 21, 2010

Florida's soon-to-be-former Chief Financial Officer Alex Sink says her state's inequity in homeowners' insurance rates must be addressed. Sink, who leaves office on January 4, added that given the current challenging economic environment, there must be a balance between considering consumers' wallets and reducing Florida's financial risk in the event of a major hurricane.

"If you look at the actuarial studies…there are homeowners out there whose rates are being subsidized 40 and 50 percent by other Floridians," said Sink. "That's the inequity that has to be addressed going forward in some kind of measured way that does get to the point that the people who are living in places that are riskiest are bearing more of their share of the risk."

The CFO is one of four offices responsible for appointing the insurance commissioner. The current insurance commissioner is Kevin McCarty. Sink is a Democrat who ran unsuccessfully for governor. Since four major hurricanes struck Florida in 2004-2005, the state has heavily subsidized property insurance in its insurer of last resort, Citizens Property Insurance.