Is Florida deregulating property insurance rates?

ST. PETERSBURG, FL -- One would think having a water-front view from your backyard would be priceless. But, Gardner Bayless says it comes with a cost. The St. Petersburg homeowner says the only option he has to insure water-front property is state-run Citizens Insurance."I like the idea of more companies here, the challenge is reasonable rates, rates that are affordable," Bayless says.But some lawmakers say competitive, reasonable, rates can be achieved through the so-called "Consumer's Choice" bill. The bill would allow the market to dictate insurance rates, not the state.Proponents of the bill say it will lure more insurance companies into the state and keep big name companies like State Farm from leaving.But, consumer advocates are wary."It seems to be giving them a way to stay in the state and let them raise their rates as high as they want," says Bill Newton with the Florida Consumer Action Network.Earlier this year, state regulators denied State Farm’s request to raise their rates by an average of 60%. So the good neighbor is dropping their Florida customers.Newton calls the bill the "State Farm bailout" and he says it would be bad news for homeowners across the board. "Its going to mean higher rates for almost everyone."The bill is now off to Governor Charlie Crist's desk where he can either sign it into law or veto it.Back in January, Consumer Reporter Kerry Kavanaugh asked Governor Crist if he was willing to work with State Farm to keep them around. "I don't want to work with them to give them a rate increase, hell no," Crist said in January.When asked about the bill earlier this week the governor said; "To have that industry unregulated in essence is not something that is appealing to me nor is it fair to the customer. I have not made a final decision on the bill and will continue to evaluate it as it reaches my desk."Homeowners like Gardner Bayless aren't so concerned with the politics of this issue. They just want an affordable way to insure their home."Charging what they want isn't going to get a reasonable price, I'm not sure what the solution is," Bayless says.