Committee releases tips on cutting costs - Recommendations to help consumers save on insurance bills include allowing higher deductibles and buying just enough coverage to pay off mortgages

Florida homeowners slammed with soaring insurance bills may have a few options to cut costs in coming months.

Allowing higher deductibles that move beyond the current 10-percent limit now in place, letting homeowners buy just enough insurance to cover their mortgages, and allowing insurers to sell policies without windstorm coverage for consumers who want to self-insure are among the recommendations coming from a committee that's been studying the state's insurance crisis.

The Property and Casualty Insurance Reform Committee, appointed by Gov. Jeb Bush in early August, has put out a 117-page interim report with 50 recommendations that could help ease problems for consumers and business owners.

Headed by Lt. Gov. Toni Jennings, the committee will put the finishing touches on its recommendations at its final meeting Wednesday in Tallahassee. These could be discussed at a special session on the insurance crisis next month.

"These may be escape valves for a desperate state," says Alex Soto, president of InSource, a Dadeland insurance agency, and also leader of the independent Insurance Agents & Brokers of America.

To Emmanuel Ferrer in Miami, being able to drop his windstorm coverage could be an attractive option. His premium more than doubled when his policy shifted from the defunct Poe Financial Group to Citizens Property Insurance, the state-run pool.

"We're willing to sacrifice coverage by eliminating windstorm" insurance, says Ferrer, who has paid off his mortgage. The Citizen's premium is $4,900; the Poe policy had cost him $2,300.

Under current law, Ferrer doesn't have that option since state law requires insurers to include wind coverage in all policies except those for homes in the designated windstorm pool area. In those cases, Citizens provides the windstorm coverage.

In South Florida, the windstorm pool runs east of I-95 and east of U.S. 1 in some areas.

Another recommendation from the committee would allow policies that cover just the balance on a mortgage loan.

Soto noted that agents now are required to sell homeowners enough insurance to rebuild their homes, regardless of what they might owe their mortgages.

The committee hopes to encourage homeowners to strengthen their homes to better withstand storms by suggesting the state Legislature appropriate funds each year to cover home inspections. It also suggests sales tax credits for materials used for mitigation.

To improve the building stock statewide, the committee also recommends adopting the Florida Building Code statewide.

For frustrated homeowners like Ida Camner in Kendall, these proposals may come too late. She needs to renew her State Farm policy by the end of December. She may increase her current 2-percent deductible and drop replacement coverage to lower her premium from the initial quote that was close to $5,000.

"I'm afraid to drop windstorm coverage," says Camner.

The committee's recommendations are expected to form the basis for discussion on insurance reforms if Bush calls lawmakers back to Tallahassee in early December. The goal is to tackle possible near-term solutions during a week-long session.

"I don't see silver bullets anywhere," says Sen. Bill Posey, R-Rockledge, who has agreed to lead the Senate Banking and Insurance Committee if the governor calls a special session.

About any possible future reforms, Soto says, "at the end of the day, it's all about you and I being able to protect our homes better and making that decision better."