Al Kutchera said he'll be one of many residents abandoning their homes and leaving the state if Citizens Property Insurance fulfills its proposal to raise rates for optional sinkhole coverage.
The plan increases rates by more than 400 percent on average statewide and more than 2,000 percent in some Bay area locations.
"Nobody will buy the house, so I'll just let the bank have the house and look for a Realtor in South Carolina or Alabama or something," said Kutchera, who owns a home in Hernando County.
Kutchera was one of more than 150 people who gathered Tuesday for a rally in front of the Pasco County Government Center in New Port Richey to protest the proposed rate increases.
Lawmakers and Gov. Rick Scott approved a bill this spring allowing Citizens to begin charging actuarially sound rates for optional sinkhole coverage. But the same legislation also included numerous measures aimed at combating sinkhole insurance fraud, which insurers claim is a major cost driver.
State Sen. Mike Fasano, R-New Port Richey, organized the rally with consumer advocacy group Policyholders of Florida.
Fasano said the issue is bringing together people from all over the Bay area and from all walks of life who wouldn't be able to afford the increased rates.
He said a senior citizen came to his office because her mortgage company told her she had to have sinkhole coverage. The woman was in tears because she can't afford the coverage under the proposed rate hikes.
"The rate increases that Citizens is proposing would create an economic crisis to the state of Florida," Fasano said. "It can't be approved by the Office of Insurance Regulation."
The state Office of Insurance Regulation will hold a hearing on the rate increase request by Citizens at 4 p.m. Sept. 13 at the Tampa Convention Center in Ballroom D.
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