Quiet Hurricane Season Bolsters Florida Insurance Market
December 2, 2014
For a ninth consecutive year, the Sunshine State went through the six-month Atlantic storm season hurricane-free.
Eight named storms were recorded in 2014, six reached hurricane strength, and none visited Florida.
Quiet is always good. Still, Florida’s luck won’t last.
Another storm will eventually take aim at the state, hitting somewhere along Florida’s 1,350 miles of coastline and producing results that will be both chaotic and expensive.
But the near-decade respite has allowed the state and property insurers to rebuild from the physically and financially taxing 2004 and 2005 storm seasons.
“I believe we can handle a repeat of ‘04 and ‘05,” said Sam Miller, executive vice president of the Florida Insurance Council. “Our system is as strong and is better positioned to handle a major hurricane than anybody else.”
Of course, one well-placed storm could change the financial picture.
In 1992, there was only one hurricane, but Andrew, a tightly packed Category 5 storm, left a deadly path of destruction that included about 63,000 homes and $25 billion in damages south of Miami.
“If a major hurricane hitting Miami or Fort Lauderdale does $50 (billion) or $75 billion, the money will be found somehow. But I can’t point to a financial system and say here is how we’d get there,” Miller said.
Steve Burgess, Florida’s insurance consumer advocate, said the years of calm have allowed the state to reduce the potential risk of such catastrophic loss.
“I believe we are heading in the right direction with the current framework,” Burgess wrote in an email. “Every year that we avoid a major storm, we build surplus needed to absorb future losses.”
The state’s Hurricane Catastrophe Fund — insurance for insurers — is already considered financially strong for the 2015 storm season after increasing its available cash and lowering its potential exposure.
Also, policyholders in Florida have benefited as a pair of surcharges to cover damages from the 2004 and 2005 storms will be sunset earlier than planned.
The risk of future assessments has also been lowered as the state-backed Citizens Property Insurance Corp. has moved about a half million of its least risky policies into the hands of private insurers.
“As each year goes by without a hurricane, I think it makes investors and potential investors a little more confident and more willing to take on more Florida property insurance risk,” Burgess wrote. “To the extent we have more capital in the market, the stronger we are. More specifically, additional capital could help further shrink Citizens (through take-out and keep-out offers) and consequently the exposure of potential assessments.”
In September, the Citizens Board of Governors unanimously voted to end a 1 percent surcharge on July 1, 2015. The storm assessment, on the books since 2007, was previously slated to continue until June 30, 2017.
Citizens imposed the storm assessment on insurance policyholders throughout the state —- whether they were Citizens customers or not — to recoup $887 million of the roughly $1.7 billion deficit created by Hurricane Wilma, which hit South Florida in October 2005. The state picked up $623 million of the costs from Wilma, while the remainder was covered by additional assessments imposed on Citizens policyholders.
The September decision followed an order from the Office of Insurance Regulation for insurance companies to end on Jan. 1 a 1.3 percent “emergency assessment” for the Hurricane Catastrophe Fund.
The so-called “Cat Fund” charge, imposed on most home and auto policies, had previously been set to end July 1, 2016.
That assessment has hit policyholders for $2.9 billion, with the money going to reimburse insurance companies for claims from the eight hurricanes that hit Florida in 2004 and 2005, the last time any hurricanes made landfall in Florida.
Heading into 2015, Citizens will continue efforts to shift its least-risky policies into the private market through a number of depopulation efforts that include a new electronic clearinghouse.
The nine-year respite, according to Lori Rodriguez, Citizens legislative and external affairs project manager, has helped to stabilize Florida’s property-insurance market with an increase in available private-market coverage.
“A storm-free 2014 also allows Citizens to continue building its surplus, which, coupled with Citizens’ reduced exposure and enhanced reinsurance program, further reduces assessment risk for all Floridians and makes rate relief possible for many Citizens policyholders,” Rodriguez said in an email.
Miller expects state lawmakers to have a number of insurance issues to deal with in the 2015 legislative session, possibly including a revisiting of the state’s personal-injury protection auto insurance system.
“I like to think that homeowners’ (insurance) is not one of them right now,” he said.
by Jim Turner, The News Service of Florida
Double Rollover Accident Shuts Down Highway 29 In Molino
December 1, 2014
Northbound Highway 29 was shut down about 5:40 Monday evening by an accident that left two vehicles overturned on Highway 29 near Molino Road. One person was reportedly injured in the crash. Pictured bottom: Traffic backed up on northbound Highway 29. Further details have not yet been released by the Florida Highway Patrol. NorthEscambia.com photos by Kristi Price, click to enlarge.
Fire Destroys Mobile Home
December 1, 2014
A Pine Forest Road mobile home was destroyed by a fire that appeared to start in a kitchen Monday afternoon. The fire was reported at 12:51 in the 6900 block of Pine Forest Road. It took less than 25 minutes for fighters to bring the fire under control. There was no one home at the time of the blaze and no injuries reported.
Escambia County Fire Rescue kicked off its annual “Keep the Wreath Green” fire safety campaign on Monday. Five-foot wreaths are on display at 21 different County fire stations. Each time firefighters respond to a residential fire, a green light bulb will be replaced with a red one to remind citizens of the dangers posed by holiday decorations.
Last year, there were 13 fires during the month-long campaign, including a Christmas Day fire on Highway 4 in Bratt.
Reader submitted photo (top) and NorthEscambia.com photos by Kristi Price, click to enlarge.
Move-In Day Set For New Ernest Ward Middle (With Photo Tour)
December 1, 2014
Work is continuing on the new Ernest Ward Middle School in Walnut Hill, with a student move-in date now on the calendar.
Students are scheduled to begin classes in the new $20 million facility on Monday, February 2, 2015. Some portions of the building are nearing completion, with furniture being moved into place. Additional furniture deliveries are scheduled throughout December, and dates are scheduled for teachers to have their items moved from the old building into the new facility.
All of the items such as computers and furniture, with the exception of library shelving, will be brand new.
Some contractors are expected to work extended hours and seven-day weeks in order to meet the completion schedule.
Pictured top: Inside the new Ernest Ward Middle School library. Pictured inset: Cabinets and shelves inside a classroom. Pictured below: A science classroom. Pictured bottom library windows. NorthEscambia.com photos, click to enlarge.
Train Derailment In Santa Rosa County (With Photo Gallery)
December 1, 2014
Update: One lane was opened about 3:45 p.m. Monday on U.S. Hwy. 90 between Jeff Ates and SA Jones Roads in East Milton. One lane remains closed as cleanup continues after Sunday morning’s train derailment. Expect delays and use caution.
Previous story:
No injuries and no chemical spills were reported in a Sunday morning train derailment in Santa Rosa County.
About 20 of the 84 cars in the CSX train derailed along Highway 90 near the Santa Rosa Industrial Park. Two cars were carrying phosphoric acid, but no leaks have been found. . A 150 foot isolation area has been put in place for as a safety measure , but no evacuations were needed, according to Joy Tsubooka, public information officer for Santa Rosa County.
Highway 90 was closed between Jeff Ates Road and SA Jones Road remained closed for the cleanup effort.
Crews from the Florida Department of Transportation, Harold, East Milton, Whiting Filed, and the HAZMAT team from NAS Pensacola fire departments responded to the incident.
Pictured: A Sunday morning train derailment in Santa Rosa County. NorthEscambia.com photos by Stephanie Norton, click to enlarge.
Regular Century Council Meeting Delayed A Week
December 1, 2014
The December 1s regular scheduled meeting of the Century Town Council has been rescheduled for next Monday, December 9.
The council normally meets the first and third Monday nights of each month, with just one meeting each December. The council voted to move that meeting to December 8 at 7 p.m. rather than holding it on December 1 to allow more time for regular bills and other items needing approval to arrive.
All Century Town Council meetings are open to the public.
Storytime For Ages Five And Under Held Each Week At The Local Library
December 1, 2014
The West Florida Public Library offers Story Time for children five and younger each week.
Story Time is held:
- 10:30 a.m. Tuesdays at the Southwest Branch Library, 12248 Gulf Beach Highway
- 10:30 a.m. Wednesdays at the Molino Branch Library, 6450-A Highway 95A
- 10:30 a.m. Wednesdays at the Main Library: 239 North Spring Street
- 4 p.m. Thursdays at the Century Branch Library, 7991 North Century Boulevard
- 10:30 a.m. Thursdays at the Tryon Branch Library, 1200 Langley Avenue.
For more information call (850) 436-5060 or visit www.mywfpl.com. The events area always free of charge.
Keep The Wreath Green Fire Safety Campaign Begins
December 1, 2014
Escambia County Fire Rescue kicked off its annual “Keep the Wreath Green” fire safety campaign on Monday. This annual effort is designed to promote fire safety during the month of December. With this program, officials hope to reduce the number of fires during a time of serious fire danger with simple, lifesaving tips.
Five-foot wreaths are be on display at 21 different County fire stations. Every time firefighters respond to a residential fire, a green light bulb will be replaced with a red one to remind citizens of the dangers posed by holiday decorations.
Last year, there were 13 fires during the month-long campaign, including a Christmas Day fire on Highway 4 in Bratt. The wood frame home suffered heavy smoke and water damage throughout following a fire that was believed to have been started by a wood burning heater.
Register Now For Saturday Christmas Parades In Century, Molino
December 1, 2014
Registrations are still be accepted for Christmas parades scheduled for this Saturday in Molino and Century.
Century’s Land To Lake Lighted Boat Christmas Parade
The Century Christmas Land To Lake Lighted Boat Parade will be held Saturday, December 6 with line-up at 5 p.m. and floats rolling out at dark from Industrial Boulevard to Lake Stone. The entry fee is $10 per boat or float, with checks made payable to the Century Area Chamber of Commerce. For more information and a printable registration form, click here.
The parade is sponsored in part by NorthEscambia.com.
Molino’s 12th Annual Christmas Parade
Molino’s 12th Annual Christmas Parade will be held Saturday, December 6 with line-up at 10:15 a.m. The parade will begin at 11 a.m. at the west end of Crabtree Church Road and will end at the Molino Ballpark were Santa will be waiting to visit with children. All funds will go directly to the community to help children in need.
To participate in the parade, you can pre-register at Fran’s Diner on Highway 29 in Molino or register day of parade. Floats are $40, vehicles, motorcycles, tractors and golf carts are $30, and horses are $20 each. No 4-wheelers or go carts permitted. For more information, contact Charity Sheldt at (850) 324-4463 or Fran’s Diner at (850) 587-2803. Donations such as toys and non-perishable food can be dropped off at Fran’s Diner. Rain date will be Sunday, December 7 at 2:30 p.m.
Pictured above: One of the floats/boats in last year’s Century Christmas Land To Lake Lighted Boat Parade. NorthEscambia.com file photo.
One Injured In Dirt Road Crash Near McDavid
November 30, 2014
One person was injured in a single vehicle crash Sunday afternoon on a dirt road near McDavid.
The driver of a Subaru Legacy lost control just before 1 p.m. on Pine Barren Road between Highway 29 and Bogia Road. The vehicle came to rest on its side in a ditch.
The 19-year old male driver was transported by Atmore Ambulance to Sacred Heart Hospital.
The accident remains under investigation by the Florida Highway Patrol. The McDavid Station of Escambia Fire Rescue also responded to the crash. Further details have not been released.
NorthEscambia.com photos, click to enlarge.
