Tampa Bay residents rally against proposed Citizens Insurance rate hike

NEW PORT RICHEY, Fla. - They showed up with signs and outrage.

Dozens of people from all around the bay area lined Little Road in New Port Richey trying to keep state-backed Citizens insurance from raising rates on sinkhole coverage.

State Senator Mike Fasano is leading the charge trying to prevent Citizens from increasing rates by more than 400 percent statewide. Some in the Tampa Bay area could see costs jump by 2000 percent.

Citizens Insurance officials say the increases are necessary because of an explosion of sinkhole claims, many they say were fraudulent.

Earlier in the day, Fasano was part of a round table discussion in Brooksville.

"Normally when I come before a group, I want to be able to express something positive. But there is nothing positive about this proposal on the table. It will put people out of their homes and out of their businesses," said Fasano.

Fasano was one those against the Senate bill that removed a 10 percent cap on how much Citizens could raise rates. He wants to see that bill repealed.

"The private companies are sitting there and waiting because as soon as Citizens' rates are approved they will ask for the same thing," said Fasano.

State Representative Rob Schenck says Citizens ultimate goal is not to offer sinkhole insurance at all. He says fraud was a big problem.

"They don't want a 5000% increase. They just want it to be expensive enough that nobody can afford it, thus, they are out of the business," said Schenck.

Former Hernando County Commissioner Rose Rocco is also worried about what the future might hold.

"If this rate increase goes through, I can guarantee you, you can put a sign on this county please someone when you are leaving please turn off the lights. Because the mortgages, the foreclosures are there, the short sales are there. And I go out and speak to people all the time and they are really afraid of what's happening here."

The message could be getting through to state officials. They've agreed to hold a public hearing in Tampa on September 13.