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Post by ferris1248 on Aug 7, 2024 7:25:44 GMT -5
Some interesting facts about Citizens and it's ability to assess fees on every insurance policy in Florida. "Over the past year, several major insurance carriers have left the state, citing Florida’s high risk of a costly weather calamity. Loose regulations and repeated hurricane damage have left residents paying the highest average property insurance premiums in the country — about $6,000 a year, or more than triple the national average." "This squeeze has pushed more homeowners to explore insuring with Citizens Property Insurance Corp., which holds about 1.2 million policies. The company is considered the "insurer of last resort" because it offers policies to customers who are seen as high risks because their properties are particularly vulnerable to damage, making them unattractive to conventional insurers." "Citizens is structured so that it will always be able to protect its policyholders and pay claims," Redfern said. "But this comes at the expense of all Florida insurance policy holders." These charges can be levied on nearly every type of property and casualty policy in Florida, including homeowner, renter, auto, boat and pet insurance policies."if there were a major storm or series of storms and Citizens exhausted its surplus and reinsurance, Florida law would require the company to levy an emergency charges on state policyholders — "83% of whom are not even Citizens’ customers."www.wusf.org/politics-issues/2024-03-18/politifact-fl-desantis-citizens-property-insurance-not-solvent-misleading
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Post by One Man Gang on Aug 7, 2024 8:06:22 GMT -5
I believe they can do the same type of thing to the FL state pension plans too in order to keep them solvent.
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Post by misterjr on Aug 7, 2024 8:51:29 GMT -5
The basic concept of insurance is to spread the risk and lessen the chances of financial disaster for any one entity.
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Post by ferris1248 on Aug 7, 2024 8:56:25 GMT -5
I agree but how many policy holders in Florida know they can be held liable for damages outside their insurance companies coverage?
Even their pet insurance? Boats? Cars? Their renter's insurance? I'd bet not many.
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Post by misterjr on Aug 7, 2024 9:08:52 GMT -5
I believe it's homeowners and certain property policies only.
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Post by ferris1248 on Aug 7, 2024 9:25:07 GMT -5
The governor's press secretary says different. It'd be an interesting question to ask.
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Post by misterjr on Aug 7, 2024 10:11:50 GMT -5
The governor's press secretary says different. It'd be an interesting question to ask. Maybe they changed the rules when I wasn't looking. We need an insurance advisory committee that includes some private citizens to keep thing honest.
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Post by misterjr on Aug 7, 2024 10:18:58 GMT -5
We have done everything necessary to keep our Citizens Insurance homeowners premium as low as possible. Roof tied down, shutters on all openings, 10% windstorm deductible, $10,000 all other perils deductible, the premium is still $8,500 annually.
It's likely to increase on renewal.
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Post by ferris1248 on Aug 8, 2024 7:21:27 GMT -5
"Citizen's CEO Cerio further explained that the company’s premiums are 55% below their actuarially sound level and, in some areas, 40% below rates charged by insurance companies.
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Post by misterjr on Aug 8, 2024 9:16:50 GMT -5
Apparently, during the first 24 years of living in my home, private insurance companies insuring my home found $4,000 to $5,000 annual premium actuarially sound. In reality, these carriers should have had reserves and reinsurance to protect them from a catastrophe causing insolvency.
In 1992, when Andrew struck South Florida, State Farm Insurance Co. paid over $8B in claims. Subsequently, when they asked the Florida Legislature for a rate increase to build back their reserves, the legislature said no, State Farm did not renew 80% of their policies and it's been a f***ed up mess since then.
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Post by ferris1248 on Aug 8, 2024 9:18:51 GMT -5
Apparently, during the first 24 years of living in my home, private insurance companies insuring my home found $4,000 to $5,000 annual premium actuarially sound. In reality, these carriers should have had reserves and reinsurance to protect them from a catastrophe causing insolvency. In 1992, when Andrew struck South Florida, State Farm Insurance Co. paid over $8B in claims. Subsequently, when they asked the Florida Legislature for a rate increase to build back their reserves, the legislature said no, State Farm did not renew 80% of their policies and it's been a f***ed up mess since then. I heard that.
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