From Bay News 9

Insurance crisis continues to impact the economy

Posted September 20, 2006

A growing number of home sales are stalling because of the dramatic spike in rates.

Donna Cahill, a west Pasco real estate agent, said business has been rocky because of the growing trend. She illustrates how the insurance crisis is impacting the economy.

"About 50 percent of the time, that's been for the past couple of months," Cahill said. "We get to the table, go to write the offer, get the insurance quote and they're not buying."

County commissioner Jack Mariano has heard similar stories, but believes for anything to change, the people must put more pressure on the politicians at the top.

One of them, Florida Lt. Governor Toni Jennings, will be at an insurance reform meeting at St. Pete College in Largo on Oct. 12 at 8 a.m. Mariano said it's a chance residents shouldn't pass up.

"They're going to take input from the public from 8 to 9, so it's very important we get the message out on what's going on locally affecting us with insurance so these folks can take it and make the recommendations and go to the governor," Mariano said.

Many homeowners are being pinched, so they try to sell only to find buyers are skittish because of high insurance.

"Last week alone, I went on four different listings where they're behind on their mortgage, they just can't afford and they're getting their tax notices too," Cahill said.

Cahill said some homeowners are saying to heck with it.

"Droves of people are going out of state where their homeowner's insurance is $600 and $700 a year, what it used to be here," Cahill said. "Why should they settle in Florida when they pay four or five times the amount just for your homeowner's?"

Others are going without insurance. Cahill fears a lot of residents who are stuck may wind up losing their homes over premiums they can't afford.

Mariano hopes the October meeting has a turnout similar to or better than the one at the Spartan Manor in New Port Richey in March.