Fla. CFO Recommends Extending Moratorium on Cancellations to Homeowners Still in Need of Repairs

November 10, 2004

At a meeting of Florida’s governor and Cabinet on Tuesday, state Chief Financial Officer Tom Gallagher recommended extending the current moratorium on insurance non-renewals or cancellations for hurricane victims whose homes have yet to be repaired.

“Homeowners who lose their insurance coverage before repairs are complete are uninsurable,” said Gallagher. “For the thousands of hurricane victims who are still waiting for repairs, extending the moratorium on non-renewals and cancellations gives them peace of mind as they rebuild their homes and lives.”

Recognizing that many homeowners are being told they must wait up to six months to schedule repairs due to a shortage of construction contractors, Gallagher has asked the Office of Insurance Regulation to develop an emergency rule prohibiting insurance companies from canceling or non-renewing homeowners insurance coverage until repairs are complete. The rule would be considered at the next scheduled Cabinet meeting, Nov. 23.

Gallagher said this issue may require legislation but wanted an emergency rule to be drafted in anticipation of approval by the governor and Cabinet at their next meeting.