Florida's congressional delegation split Thursday on a bill that
would expand the National Flood Insurance Program to offer hurricane
protection as well.

The divide isn't inland versus coastal.

It's on party lines.

Florida Democrats -- Tim Mahoney, Ron Klein and Robert Wexler --
supported California's Maxine Waters effort to make windstorm insurance
coverage available to coastal residents, directly from the federal
government. They helped her win a 38-39 vote Thursday in the House
Financial Services Committee.

Florida Republicans -- Tom Feeney, Ginny Brown-Waite and Adam Putnam
-- voted, and argued, against the bill. Brown-Waite offered an amendment
to make the federal insurance plan only a study. It failed.

Feeney.WMA

Feeney --you can listen to him at the link above -- was
quoted by the National Underwriter as saying "We all know our
constituents will be calling us from day one begging for lower rates and
higher coverage." For evidence of the potential damage to the private
insurance market, the former Florida House Speaker pointed to the
state's Citizens Property Insurance.

Gov. Charlie Crist is walking a quiet line on the bill. His deputy
staff director in Washington urged Crist and his administration to
publicly oppose the legislation, viewed as having the potential to
undermine a private market solution, a national catastrophe fund.

But the governor's communications director said Crist "hasn't really
taken a specific position" on the federal hurricane insurance bill. "We
have not because we are focused on a national cat fund," said Erin
Isaac. "The governor feels that is his priority."

It's pen versus pen.

Property insurers today fired off an editorial they hope Florida
newspapers will run, accusing the state of attempting to secure
"unattainable rate decreases, regardless of the risk and with no
consideration for long-term stability."

The opinion piece is the industry's answer to Insurance Commissioner
Kevin McCarty's op-ed last week railing against insurers' decision to
use hurricane coverage discounts granted by the Legislature to beef up
their own storm defenses, rather than pass the savings on to consumers.
Though McCarty's letter mentioned only Florida Farm Bureau by name, the
indictment was aimed at the industry as a whole.

Insurers -- through the Property Casualty Insurers Association of
America and its chief lobbyist, William Stander, the author of today's
screed -- are trying to build support for a revolt against Gov. Charlie
Crist's reform. They want the state-run Citizens Property Insurance to
be reined in, more incentives for Floridians to strengthen their homes,
and more restrictions on building in high-risk areas.

For those skyrocketing insurance bills?

The industry proposes yet-higher storm deductibles, allowing premiums
to go down, and state grants to help storm victims pay those deductibles
when the wind blows.

The trade group also endorses a proposal being worked on by two
Florida congressmen: federal financing to support state catastrophe
funds. Reps. Tim Mahoney and Ron Klein are authoring a bill to create
such a program, along with the sale of catastrophe bonds, a concept
also considered by Crist's office.