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RESOLUTION NO. 2006- ~ ~ ~ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, RELATING TO LOBBYING THE FLORIDA LEGISLATURE TO AMEND THE FWUA LEGISLATION TO AMEND THE ARBITRARY WINDSTORM "LINE" OF EAST OF U.S. 1 AND EAST OF 1- 95 SO AS TO FAIRLY DISTRIBUTE RISK THROUGHOUT THE STATE; SEEKING SUPPORT FROM ALL NEIGHBORING COMMUNITIES WITH THIS INITIATIVE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Florida Legislature in November 1993 created the Florida HlllTicane Catastrophe Fund, under Section 215.555, Florida Statues, and also enacted the FWUA, an association of private insurers, under Section 627.35 I (2), Florida Statutes, to provide hurricane and windstorm insurance to Florida residents who could not obtain an offer for coverage from another insurer; and WHEREAS, the FWUA (Citizens Insurance) is the only available source of hurricane and windstorm insurance for thousands of residential property owners in Florida, for all residents east of U.S. I and 1-95, and provides windstorm insurance coverage for all properties east of this line, including the residents of Sunny Isles Beach, who are not able to obtain an offer of coverage in the voluntary market; and WHEREAS, there have been 27 tropical events during the 2005 hUlTicane season, including, but not limited to Hurricanes Katrina, Rita and Wilma; and WHEREAS, weather experts predict that the future hurricane cycle for the upcoming 20 years shall consist of higher strength and more frequent hurricane and tropical storm activities, as compared to the past 20-30 year cycle; and, WHEREAS, based upon the foregoing, the insurance industry shall be increasing windstOlm premiums for all Florida residents, and many insurance companies may be leaving the market; and, WHEREAS, the FWUA arbitrary "windstorm insurance coverage line" requires a higher insurance premium, through Citizens Property Insurance, for all those prope11ies east of the artificial line; and, WHEREAS, continued existence of this arbitrary imaginary line, with no basis in science, which was created as a political compromise by the Florida Legislature and Florida Insurance Commissioner as part of the FWUA, shall inordinately burden those property owners east of the line, despite the fact that hurricanes affect all of Florida; and, WHEREAS, due to the devastation from the past two years of hurricane events that affected Florida, all properties east of this arbitrary line face a 40 to 50 percent increase in their insurance premiums; and R2006-888 Windstorm Insurance Coverage Line Fwua Page I of 3