Posted By: Judy Smith

By DAVID ROYSE, Associated Press WriterTue Nov 14, 5:58 PM ET

TALLAHASSEE, Fla. - Homeowners in hurricane-weary Florida should be able to get bare-bones property insurance, coverage for only part of their home's value or even a policy that doesn't cover hurricane damage, according to draft recommendations from a state task force.
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Floridians have seen hurricane premiums go through the roof in the past few years after eight hurricanes affected the state. Insurance companies, who say they have paid out billions, have warned that rates must go up if companies are to continue offering products in Florida.

A special state task force named by Gov. Jeb Bush to study the problem was set to meet for the final time Wednesday. Its recommendations will be sent to the governor, who has indicated he would like lawmakers to tackle the issue before he leaves office in January.

The draft from the Property and Casualty Insurance Reform Committee included a number of proposals that would lessen the risk of property insurance companies, mainly by essentially allowing homeowners to take on greater risk themselves. The idea is that by being allowed to sell scaled-down policies, companies could offer lower rates.

One suggestion is to let a homeowner buy coverage for personal contents, fire, theft or other things, but reject wind coverage. Currently, most companies don't sell policies for some perils, such as fire or sinkhole damage, without selling wind coverage.

Mortgage holders wouldn't be able to buy such limited policies because their banks require full coverage. But some people could, including some mobile home owners and those who have paid off their home — such as retirees who sold their homes up north and paid cash for their Florida house.

The draft also suggests making it clear to consumers what discounts they could get for hurricane-proofing improvements to their home — something many see as the best chance for lowering hurricane losses. Also, consumers should also be able to choose higher deductibles and insure only the value of the outstanding part of their mortgage, the draft said.

Models that the insurance industry uses to evaluate risk also should be updated to include stronger houses built since the state updated its residential building code, the panel said. It also suggested policy makers evaluate whether the state's building code for commercial buildings should be strengthened.

The Florida Insurance Council, an insurance trade association, has not taken an official position on the proposals. But Sam Miller, a spokesman for the group, said some of the proposals could allow companies to lower rates, something other proposed fixes have failed to do.

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