Florida's Insurance Crisis

[Uncle Timmy]

An article regarding the Florida's Insurance Crisis and Gov. Crist's special session this week that is looking into some solutions.

http://www.kansascity.com/mld/kansascity/news/breaking_news/16487121.htm


Quote from the Article:

"During this week's special session, lawmakers appear ready to direct the state to assume far more of the financial risk posed by hurricanes in the hopes of bringing rates down. Ideas range from allowing insurance companies easier access to Florida's catastrophe fund - an emergency reserve funded by surcharges on all insurance policies - to capping the industry's total liability at about $21 billion. Crist has even suggested dramatically expanding the role of government-run Citizens.
Supporters predict those kinds of changes could result in premiums dropping 25 percent to 40percent."

[TooFarTampa]

There is a huge amount of work (!) being done by the Legislature this week. :popcorn: One thing the Senate passed yesterday is something Crist has supported -- require companies that sell auto and other policies in Florida to sell homeowners insurance if they also sell it in other states. There is some talk that such a law could create unintended dire consequences but people are angry, the lawmakers are listening and the insurance lobbyists have been humbled. :blink: :cool:

A planned huge Citizens hike for 2007 is going to be repealed. But the biggest change likely will be the notion that Citizens should be run like a business and the state should provide a greater amount of reinsurance to companies writing policies in Florida, instead of those companies seeking it on the open market (read: Warren Buffett's Berkshire Hathaway).

I give them all props for trying to do something. But they have to. They know if they don't, SHELLY's economic meltdown is imminent, at least in Florida ...

[JoshMclean]

If we do have an economic meltdown....I blame Shelly :pissed:

[flyforfun]

If we do have an economic meltdown....I blame Shelly :pissed:

I ditto that!

[flyforfun]

There is a huge amount of work (!) being done by the Legislature this week. :popcorn: ...

Tampa are you reading about any new legislation that will give second home owners some tax relief?:idontno: I keep hearing about this piece of legislation, but not being local I don't know if has been assigned a number and dropped into a committee.

[TooFarTampa]

Tampa are you reading about any new legislation that will give second home owners some tax relief?:idontno: I keep hearing about this piece of legislation, but not being local I don't know if has been assigned a number and dropped into a committee.

Hi Fly, the special session is only to address the insurance crisis. I do believe they will address the property tax system at some point during the regular session, and they may even attempt an overhaul, but the problem is that I haven't heard of any solutions people can actually agree on. The insurance issue has taken priority though so there will a huge focus on property taxes once the insurance issue has been ... for lack of a better word ... resolved to the best of their abilities.

If/when property taxes are addressed, second home owners are obviously not going to be a priority ... BUT many feel it is unfair for non-homesteaders, newcomers, businesses and people trying to "move up" to bear such a large portion of the tax burden.

By the way, compared to much of the rest of the state, Walton County is a GREAT place to be a second homeowner. The millage rate is relatively low (under 10 ... compare to Tampa and St. Petersburg at 28 :eek:). Plus, the county allows for short term rentals to defray costs, where many counties and municipalities do not. We have friends who own a second home on Pass-a-Grille in St. Pete Beach. It's one of my favorite places in the world, but aside from the expensive real estate, there are major restrictions on rentals and the taxes are out of this world. The taxes on their 2-bedroom 1930s ranch, obviously built nowhere near code, on the Intracoastal Waterway went up last year from $12K to $25K. :eek: :eek: :eek:

[flyforfun]

By the way, compared to much of the rest of the state, Walton County is a GREAT place to be a second homeowner. The millage rate is relatively low (under 10 ... compare to Tampa and St. Petersburg at 28 :eek:). Plus, the county allows for short term rentals to defray costs, where many counties and municipalities do not. We have friends who own a second home on Pass-a-Grille in St. Pete Beach. It's one of my favorite places in the world, but aside from the expensive real estate, there are major restrictions on rentals and the taxes are out of this world. The taxes on their 2-bedroom 1930s ranch, obviously built nowhere near code, on the Intracoastal Waterway went up last year from $12K to $25K. :eek: :eek: :eek:

Yea, but we get hit again with advalorium taxes on the rentals.

[TooFarTampa]

Yea, but we get hit again with advalorium taxes on the rentals.

Not sure what you mean by this? Do you mean the tax on personal properties? Maybe you have much nicer furniture than we do :floor: but for us this is a very small amount.

[Bobby J]

My uncle is big in the Florida insurance business and will be sending me a breakdown of what we all can expect to see out of the insurance business over the next few years. It sounds kinda like this... We are going to reduce rates 30%.... But here is the catch.... If "we" get hit by another storm we are going to raise 180%... Now are you all happy! You get your way and we can go back to making more money. Thank you!

[Beachlover2]

Just recd this e-mail from Newman Dailey






Dear Business Partners:

This is a step in the right direction for us. Please review the following news release regarding the legislators passing their insurance proposals designed to reduce property insurance rates.


--------------------------------------------------------------------------------


Legislators Pass Insurance Proposals

Legislators in the House and Senate unanimously passed their respective insurance proposals in record time this afternoon after passing them out of committee this morning. These bills are designed to produce immediate reductions in property insurance rates for policyholders covered by Citizens, the state insurer of last resort, and those in the voluntary market. The Senate has sent SB 4A Relating to Hurricane Preparedness and Property Insurance by Senator Bill Posey (R-Rockledge) to the House for consideration, while the House has sent the Senate a package of six bills, five substantive bills each dealing with similar subjects found in the Senate proposals and one House Memorial aimed at urging the US Congress to create a National
Catastrophe Insurance Program.

It is expected that Senate will amend their language onto each of the five House bills before sending them back the House for consideration. At this point it will be up to Senate and House leadership to decide whether a formal conference process will be needed to resolve some of the differences between the bills or if the two chambers will be able to informally negotiate with each other.

[yippie]

Here is a link to the Daily News insurance storys. They have been running a series of stories following the Legislation.

http://www.nwfdailynews.com/articleArchive/jan2007/insuranceshelter.php

One of the things I favor is to stop insurance companies from forming a separate subsidery from the mother company. Presently, many of the major insurance companies consider their Florida operations separate from their national company. When they go to the state asking for approval for a HUGE rate increase, they only present the portion "____ of Florida" financials, not the overall picture.

Of course, up until now, they have shown HUGE losses in Florida, but record profits nationally.

That needs to change!

[flyforfun]

But here is the catch.... If "we" get hit by another storm we are going to raise 180%... Now are you all happy! You get your way and we can go back to making more money. Thank you!

Yea, that is the kind of language insurance companies dream about having, but no one is going to sign off on that deal! What is needed is a an elected public service commission to over view any and all request for rate increases! Not just storm coverage, but for auto and health. Would be model legislation for the rest of the country!

[Bobby J]

Yea, that is the kind of language insurance companies dream about having, but no one is going to sign off on that deal! What is needed is a an elected public service commission to over view any and all request for rate increases! Not just storm coverage, but for auto and health. Would be model legislation for the rest of the country!

Why do you feel noone wil sgn off on that!

[Bob]

Notice that the inland homeowners will continue to subsidize coastal owners through shortfall assesments. Add the lack of this year's rate increases to the mix, and you have more of the same with greater exposure to inland policyholders for the next big storm, Nothing much has changed.

[flyforfun]

Why do you feel noone wil sgn off on that!


Well Bobby J, Florida is going to continue to get hurricane's and unless there is a very high threshold amount, they will be getting the go ahead for a 180% increase every 3-4 years. No one is going to agree to do that.

[TooFarTampa]

The latest. Accurate, readable, boiled down:

http://www.sptimes.com/2007/01/19/State/The_results__a_freeze.shtml

[Bobby J]

Well Bobby J, Florida is going to continue to get hurricane's and unless there is a very high threshold amount, they will be getting the go ahead for a 180% increase every 3-4 years. No one is going to agree to do that.

I was having fun with the 180% increase but my Uncle said it is going to be a break up front and a big hit if they get hit. A compromise if you will! They are in the money making business and will not lose money. If they lose they will close up just like you and I would. We shall see...

[yippie]

Yea, that is the kind of language insurance companies dream about having, but no one is going to sign off on that deal! What is needed is a an elected public service commission to over view any and all request for rate increases! Not just storm coverage, but for auto and health. Would be model legislation for the rest of the country!

The public service commission doesn't deal with anything except public utilities.

The insurance companies go in front of the Insurance Commission and the State Legislators for approval.

[Bobby J]

The public service commission doesn't deal with anything except public utilities.

The insurance companies go in front of the Insurance Commission and the State Legislators for approval.

And they do it quite well I might add :cool:

[Smiling JOe]

Notice that the inland homeowners will continue to subsidize coastal owners through shortfall assesments. Add the lack of this year's rate increases to the mix, and you have more of the same with greater exposure to inland policyholders for the next big storm, Nothing much has changed.That part wouldn't be nearly as bad if people didn't build expensive homes along the coast. (I am not just refering specifically to SoWal, but coastal Florida.)

[pmd8]

Don't worry about the Panhandle. It's exempt from the stricter building codes. According to the powers that be, the trees will protect the houses from the winds.

I'll have to send them my photo of a 50 foot Norfolk Pine which was flipped 180 degrees and impaled a roof during Andrew.

[TooFarTampa]

Don't worry about the Panhandle. It's exempt from the stricter building codes. According to the powers that be, the trees will protect the houses from the winds.

I'll have to send them my photo of a 50 foot Norfolk Pine which was flipped 180 degrees and impaled a roof during Andrew.


Not for long. That law is about to be rewritten as well. :clap_1:

(For those wondering: any homes built in mid-2003 or more recently that are located within 1 mile of the coast -- which accounts for many of the homes in SoWal -- are subject to the stricter statewide "Miami-Dade" building codes that took effect that year.)

[SHELLY]

Not for long. That law is about to be rewritten as well. :clap_1:

(For those wondering: any homes built in mid-2003 or more recently that are located within 1 mile of the coast -- which accounts for many of the homes in SoWal -- are subject to the stricter statewide "Miami-Dade" building codes that took effect that year.)

The builders and developers who've been fighting to keep the stricter building codes at bay in the Panhandle <cough: by greasing the political skids> have finally met their match from the uproar for lower insurance rates by the rest of Florida. That will put much more stress on the chances of building afforadable housing to support the panhandle's "service economy." The days of the SoWal $20.00 Happy Meal are nigh.

http://www.waxelastic.com/blog/images/happymeal.jpg

[Bobby J]

Here is a summary of what was passed. The Governor has yet to sign, but is
expected to. Welcome to Florida, the socialized insurance state!

[Buckhead Rick]

The main reason the in land property has to partly support the coastal property as far as afforable insurance is because without the coastal the state would be called Kansas.

[Bobby J]

The main reason the in land property has to partly support the coastal property as far as afforable insurance is because without the coastal the state would be called Kansas.


What do you mean by this?

[SHELLY]

The main reason the in land property has to partly support the coastal property as far as afforable insurance is because without the coastal the state would be called Kansas.

I heard the reason the inland properties subsidized the coastal properties was because the beach-front houses and condos provided them with storm surge protection.


.

[Beachbummett]

The main reason the in land property has to partly support the coastal property as far as afforable insurance is because without the coastal the state would be called Kansas.

Ditto! Ditto!:lolabove:

[flyforfun]

I heard the reason the inland properties subsidized the coastal properties was because the beach-front houses and condos provided them with storm surge protection.


.


Never thought about being surge protection, but heck yea! Good point! Build more condos!:rolling:

[seacliffes]

I heard the reason the inland properties subsidized the coastal properties was because the beach-front houses and condos provided them with storm surge protection.


.

Subsidized(?)
Kind of like the way we coastal homeowners subsidize the rest of the county with our higher property taxes....... Not to mention the inland ancillary businesses benefiting from tourism dollars and the resulting sales taxes coastal properties generate that "inland" residents benefit from....

Somehow I think this is a two way street, all things considered

[Bob]

"expands the asessment base to auto insurance." time to clean weapons!

[hi n dry]

Coastal insurance crisis is also in Northeast.

Also, note the Newsweek survey:
Should the government help provide insurance to homeowners in coastal areas?
Yes
No
Not sure

http://www.msnbc.msn.com/id/16720746/site/newsweek/

The Insurance Climate Change
Coastal homeowners in the East are losing their policies or watching premiums skyrocket. Carriers say that global warming is to blame.

By Karen Breslau
Newsweek

Jan. 29, 2007 issue - During the nine years she's lived in her historic sea captain's house on Cape Cod, Mass., Paula Aschettino never filed a claim against her homeowner's insurance policy. But last year she received a letter from her insurer, Hingham Mutual Group, canceling coverage on her nine-room, $600,000 oceanfront home, which has withstood its share of hurricanes since 1840. She and her husband, Michael, scrambled to find other insurance but were repeatedly denied. "They just said we are in a high-risk area," she says. A spokesman for Hingham, which canceled 9,000 Cape Cod policies, says that the company's own coverage—known as "reinsurance"—had doubled in the past year, making it necessary to withdraw from the coastal market.
The Aschettinos finally found other insurance, but only for nearly double their old premium of $1,800, and with a sky-high deductible of $12,000 against wind damage. Incensed, Aschettino circulated a petition among her neighbors demanding price reform from industry regulators. "People feel they are being totally ripped off," she says. "People are afraid to even make claims, because they are afraid they're going to be dropped."

Up and down the Eastern Seaboard, hundreds of thousands of policyholders like the Aschettinos are being dropped by their insurers; many more have had to swallow double-, even triple-digit increases in premiums and deductibles. While discontinued policies and rate hikes are nothing new in hurricane-battered Florida and the Gulf Coast, insurers are now dinging homeowners in the Northeast and mid-Atlantic states. Allstate Insurance recently announced it wouldn't take new homeowner policies in New Jersey, Connecticut and Delaware—or the five boroughs of New York City. The company also won't renew 30,000 of more than 600,000 policies it carries in and around New York City. A host of other firms are refusing to insure properties along the Atlantic coast from Maine to the Carolinas.

Why the sudden rash of cancellations? An increase in "extreme weather events" that many scientists—and now insurers—believe are linked to climate change. It's not just Category 4 hurricanes that have insurers worried. Around the country, companies have been racking up record property losses from freakish weather, such as the ice storms last week that paralyzed much of the Great Plains and froze California's citrus crops. In recent years, wildfires in the Northwest, drought and hail in the Midwest, windstorms, lightning strikes on power grids, soil subsidence and other calamities of nature have led to cumulative property losses that exceed those caused by hurricanes. "There's a shift going on to more frequent, extreme weather events," says Evan Mills, an environmentalscientist at the U.S. Department of Energy's Lawrence Berkeley National Laboratory. "It's as much an issue in the heartland as on the coast."

Global warming is the culprit, claim many—including several insurers who are canceling policies. While scientists cannot determine whether a single weather event is caused by a natural cycle, or is evidence of more permanent, malignant climate change, the pattern of mounting losses is clear. According to Mills, weather-related catastrophe losses have increased from about $1 billion a year in the 1970s to an average of $17 billion a year over the past decade. In 2005, the year of Katrina, that figure reached $71 billion.
Even before Hurricane Katrina—an event that has yet to be conclusively linked to climate change—catastrophe modelers had begun to look at the probability of a Category 3 or higher storm hitting the Eastern Seaboard. What they found was terrifying: because of increasing temperatures in the Atlantic, along with changes in air and sea currents, a major storm in the densely populated and highly priced Northeast would dwarf the $45 billion in insured losses wrought by Katrina. One study found that a repeat of the "Long Island Express," the Category 3 storm that plowed through New England in 1938, killing 600 people, would cause $200 billion in damage today. (For the record, the Aschettinos want it known that their house survived the Long Island Express.) The damage from a Category 5 storm directly hitting a major city, could, researchers say, "exceed the total capacity" of the U.S. insurance industry. Before he retired earlier this year, National Hurricane Center director Max Mayfield issued a final warning: "We're setting ourselves up for a major disaster."

[TooFarTampa]

:shock:

[Bob]

Subsidized(?)
Kind of like the way we coastal homeowners subsidize the rest of the county with our higher property taxes....... Not to mention the inland ancillary businesses benefiting from tourism dollars and the resulting sales taxes coastal properties generate that "inland" residents benefit from....

Somehow I think this is a two way street, all things considered
Logic 101 is challenging I guess. Hold your wallet open, so that I can afford my insurance needs. How does that feel? Check the street sign, as I think that reads one-way street.

[Donna]

Many coastal properties are owned by those who cannot vote in Florida. We pay far higher property taxes because we do not have homestead exemption status. Many of us rent our properties part of the year, which translates into very healthy revenues to local government in the form of bed tax. And we use very few services because we do not have children in schools, etc. The absentee owner is the best thing that ever happened for locals. We are paying our taxes as well as augmenting ownership for those who live and vote here, who pay disproportionately lower taxes and incur no bed tax. Not to mention the obscene taxes that out-of-towners pay to rent a car in the State of Florida. Jeez...what is with all that?

Treat us like we were your neighbors, folks, because...we are the best neighbors you'll ever have. And had the Florida Legislature not done something about the robbery that insurance rates has been, the real estate market would never have recovered. I have had more concern about insurance rates than the question of home values, property taxes, and hurricanes combined. I salute this action and just in time!

[TooFarTampa]

Many coastal properties are owned by those who cannot vote in Florida. We pay far higher property taxes because we do not have homestead exemption status. Many of us rent our properties part of the year, which translates into very healthy revenues to local government in the form of bed tax. And we use very few services because we do not have children in schools, etc. The absentee owner is the best thing that ever happened for locals. We are paying our taxes as well as augmenting ownership for those who live and vote here, who pay disproportionately lower taxes and incur no bed tax. Not to mention the obscene taxes that out-of-towners pay to rent a car in the State of Florida. Jeez...what is with all that?

Treat us like we were your neighbors, folks, because...we are the best neighbors you'll ever have. And had the Florida Legislature not done something about the robbery that insurance rates has been, the real estate market would never have recovered. I have had more concern about insurance rates than the question of home values, property taxes, and hurricanes combined. I salute this action and just in time!

Everybody in Florida ('cept maybe those Orlandians ;-) ) seems to need insurance relief -- residents, secondhomeowners, businesses. There is debate about how much the new laws will actually reduce rates right away, but at least they will stay under control. For now. Property taxes is next on the agenda, an issue that seems even more complex than insurance. :blink: They're talking about somehow capping what municipalities and counties can tax, which makes some sense because everyone wonders where this influx of money is going. This state is just in a pickle, no two ways about it. I am glad that Tallahassee is at least trying -- truly, honestly trying. That's something.

[seacliffes]

Logic 101 is challenging I guess. Hold your wallet open, so that I can afford my insurance needs. How does that feel? Check the street sign, as I think that reads one-way street.

Well that is your perspective, as a coastal homeowner I have mine. The one way street also leads from the coastal home owner's wallet when it comes to the taxes paid to both the Federal and the State treasuries. The Government knows this and they do not want to kill the goose that lays the Golden eggs via lucrative tourist tax revenue and high property taxes coastal properties generate. Also known as Economics 101, which may be challenging for those who claim the logical high ground. Making it simple, invest $1 to generate $2 in revenue that will "go to the common good" as some policticians would call it, so that all state residents benefit. Arguable, I know, but that is from my perspective.

[TooFarTampa]

Well that is your perspective, as a coastal homeowner I have mine. The one way street also leads from the coastal home owner's wallet when it comes to the taxes paid to both the Federal and the State treasuries. The Government knows this and they do not want to kill the goose that lays the Golden eggs via lucrative tourist tax revenue and high property taxes coastal properties generate. Also known as Economics 101, which may be challenging for those who claim the logical high ground. Making it simple, invest $1 to generate $2 in revenue that will "go to the common good" as some policticians would call it, so that all state residents benefit. Arguable, I know, but that is from my perspective.

There's a great deal of truth to this. Bob I know that you don't want all of Florida's coastal residents to decide to move to Orlando. The fact of the matter is that Orlando, Gainesville, Tallahassee and Ocala are the only four main cities not on or right by the coast, and the last three aren't very big. It is what it is as they say. I have heard that wind insurance is much less expensive and easier to obtain in at least two of those cities. And all four cities have and will continue to benefit from Florida's coastlines.

[Bobby J]

The bottom line is where ever you are in Florida you are within 60 miles of the coastline. Orlando is 30 miles from one of my favorite surf breaks. Florida is all about the coast!:biggrin:

[Bob]

Everybody in Florida ('cept maybe those Orlandians ;-) ) seems to need insurance relief -- residents, secondhomeowners, businesses. There is debate about how much the new laws will actually reduce rates right away, but at least they will stay under control. For now. Property taxes is next on the agenda, an issue that seems even more complex than insurance. :blink: They're talking about somehow capping what municipalities and counties can tax, which makes some sense because everyone wonders where this influx of money is going. This state is just in a pickle, no two ways about it. I am glad that Tallahassee is at least trying -- truly, honestly trying. That's something.This year my insurance company requested a 40 percent increase on my Orange County residence homeowners policy. I am 93 feet above sea level and about 40 miles from the coast. I weathered 3 hurricanes in '04 , and luckily had no claims[because of the state mandated wind deductible]. My point before is that, as an inland owner, I have my hands full dealing with my own insurance company[USAA]. Now the state wants to bill me through my homeowners and auto policy for Citizens shortfalls. They have already twice billed me for the '04 and '05 storm season shortfalls. If we are to adapt insurance socialism here with asessments, be fair about the money grab and let the dollars come out of the state general fund. The cost would be spread out to the total population, not just homeowners. Is this unreasonable? The Citizens bailout plan leaves the company exposed to more storm claims and shifts lack of funding to inland owners.

[TooFarTampa]

This year my insurance company requested a 40 percent increase on my Orange County residence homeowners policy. I am 93 feet above sea level and about 40 miles from the coast. I weathered 3 hurricanes in '04 , and luckily had no claims. My point before is that, as an inland owner, I have my hands full dealing with my own insurance company[USAA]. Now the state wants to bill me through my homeowners and auto policy for Citizens shortfalls. They have already twice billed me for the '04 and '05 storm season shortfalls. If we are to adapt insurance socialism here with asessments, be fair about the money grab and let the dollars come out of the state general fund. [B]The cost would be spread out to the total population, not just homeowners. Is this unreasonable? The Citizens bailout plan leaves the company exposed to more storm claims and shifts lack of funding to inland owners.

I thought that is what they were doing with the new "reinsurance plan" that would help all companies other than State Farm (which will not participate). Wouldn't any money needed to cover huge losses come out of the general fund? Correct me if I am wrong. The Citizens problem is a problem but is a separate problem. I'm hoping that after the '05 assessments that will be end of the assessments, but maybe I am incorrect.

Bob have you gotten your renewal from USAA yet? I'm just curious. Ours comes due at the end of April for our Tampa home. Like you I read about the 40 percent increases and am bracing for it. Are you sure in Orlando you will be getting that too? USAA has been pretty fair all along. It is outrageous to me if inland homeowners are getting those huge increases as well. Totally uncalled for.

[Bob]

You're killing my overly dramatic posts! Help me! I'm dying! Yes, the USAA state-approved increase is between 17-18 percent[those weasels wanted 40]. Unless a sinkhole or arsonist gets me, I will forever being paying to make someone else happy. When the mortgage is payed off, self insurance may be a viable alternative. If I ever build at the beach, I know a wind policy will not be in the cards.

[TooFarTampa]

You're killing my overly dramatic posts! Help me! I'm dying! Yes, the USAA state-approved increase is between 17-18 percent[those weasels wanted 40]. Unless a sinkhole or arsonist gets me, I will forever being paying to make someone else happy. When the mortgage is payed off, self insurance may be a viable alternative. If I ever build at the beach, I know a wind policy will not be in the cards.


LOL:rolling: :rolling:

I wasn't trying to call you on anything, just wanted to know what was going on with USAA. You were right about the catastrophic fund ... it doesn't come out of general funds, but out of assessments. I just read that if we have a massive hurricane this year we could a $10-billion shortfall. :blink: How long will it take for Charlie to save $10-billion? Maybe we'll be lucky and have a couple of good years statewide. :bang:

[seacliffes]

This year my insurance company requested a 40 percent increase on my Orange County residence homeowners policy. I am 93 feet above sea level and about 40 miles from the coast. I weathered 3 hurricanes in '04 , and luckily had no claims[because of the state mandated wind deductible]. My point before is that, as an inland owner, I have my hands full dealing with my own insurance company[USAA]. Now the state wants to bill me through my homeowners and auto policy for Citizens shortfalls. They have already twice billed me for the '04 and '05 storm season shortfalls. If we are to adapt insurance socialism here with asessments, be fair about the money grab and let the dollars come out of the state general fund. The cost would be spread out to the total population, not just homeowners. Is this unreasonable? The Citizens bailout plan leaves the company exposed to more storm claims and shifts lack of funding to inland owners.

All of your points are good ones and I agree the subsidy should come out of general tax funds since the additional tax revenue from coastal tourism could then fund this.