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Legislation capping rate hikes on state run Citizens Property Insurance still needs approval from the Governor. The legislation caps Citizens rate increases at 10 percent. A freeze on Citizens rates expires in January. Without the cap, rates could go up as much as 50 percent a year. Insurance lobbyist Bob Lotane said the increase will slowly drain the state run insurer, making it better able to pay claims.

“That’s going to allow them to build up their reserves, so if we have a hurricane, they have more money to pay claims. Without that money they are going to have to resort to assessing, Citizens customers first and then every other policy holder in the state, so it’s kind of a pay me now or pay me later thing,” said Lotane.

1.1 million Floridians have Citizens insurance; they contribute about two billion dollars a year in premiums, leaving an estimated 400 billion dollars in hurricane exposure in the state’s hands.