Over the last six months, your Martin County Taxpayers Association has been following the "tax" being imposed on all Florida homeowners by the Florida state treasurer/insurance commissioner on behalf of the Citizens Property Insurance Corporation.

Many homeowners remain unaware of the true nature of the large, and quickly increasing, surcharge being added to your insurance bill to cover the huge losses citizens have suffered over the last few years.

This "tax" usually is hidden in your annual homeowners' premium described in the policy as "Florida Hurricane Premium Recoupment" or "Florida Hurricane Catastrophe Fund" or simply "FHCF Recoupment."

Advertised in August 2005 as "averaging $68 per homeowner statewide," it has added, by our estimate, more than $120 to the average policy in Martin County last year. Look for it in the "declarations" or "endorsements" section of your current policy, or ask your agent/insurance company about it.

For those still not familiar with the CPIC, or "Citizens," Florida statute created it in 2002 to be the insurer of last resort for those unable to obtain insurance from commercial sources.

Representatives from southeastern Florida, including Key West, Miami Beach and Palm Beach, sponsored the bill establishing the corporation. In essence, the statute provides coverage for property that is sufficiently at risk for hurricanes or other hazards for which the owner cannot obtain insurance in the normal manner.

This includes businesses and properties built in areas prone to damage, especially expensive oceanfront properties and those not meeting current construction codes. In short, responsible homeowners are subsidizing those investing in riskier and often much more expensive properties.

In August 2005, we made you aware that Citizens had lost more than $500 million in 2004. Our November 2005 article estimated this figure as over $1 billion. Last week, Citizens presented a loss of $1.49 billion for hurricane Wilma alone, following a report by the Florida auditor general.

Most telling was the quote from the Citizens spokesman: "The larger shortfall means homeowners should expect to pay a higher assessment than anticipated ... how much ... will be known in March after an audit is finished."

Several groups around the state, including the state auditor and Senate Banking and Insurance Committee are looking into Citizens' losses and allegations of mismanagement. A special "task force on long-term solutions to Florida's hurricane insurance problems" has been meeting and debating recommendations for Citizens, which are scheduled to be released next month.

They are reported to include:

• Limiting eligibility to homes with an insured value of $500,000 or less.

• Limiting total coverage to $1 million.

• Placing a three- to five-year time limit on coverage

• Low-interest loans and grants for upgrading uninsurable properties.

• Hefty rate increases for Citizens policyholders.

We welcome these recommendations, but it will take a lot of legislative muscle to make them reality. The same elected officials from South Florida who created Citizens already are indicating that even the modest 11 percent increase currently scheduled for Citizens' policies is too high.

Also, the task force's report may come with a recommendation to require a rapid cash buildup in the above-mentioned Florida Hurricane Catastrophe Fund. Both of those items easily can translate into even higher surcharges on your insurance policy. Worse yet, discussions have occurred recently on the possibility of using the state sales tax to shore up Citizens.

Our bottom line: We have no problem with Citizens as long as it is self-sustaining and limited to those truly unable to obtain coverage. But unless there are extraordinary and compelling circumstances, Citizens' rates to each property covered must be made high enough to cover the extra risk. We look at these assessments as nothing but another tax on our homeowners — one that tends to benefit those not exercising self-restraint and good judgment in their selection of home or business properties.

Notify your elected state officials that you are tired of subsidizing irresponsible property owners and having unelected commissions place "taxes" on your property.