Citizens Property Insurance has 1 million policies in Florida

Date:


A few weeks ago, more than half of the private homeowners insurance providers in FL were slated to be downgraded by the financial analysis firm that rates them.

TAMPA, Fla. — We told you a few weeks ago about how more than half of the private homeowners insurance providers in the state were slated to be downgraded by the financial analysis firm that rates them.

CHOOSE YOUR CHOICE GIFT CARD OFFER TODAY

That left many people scrambling to Citizens Property Insurance, the government-run and regulated insurance which is usually meant to work as a final option.

Now, Citizens Insurance has more than 1 million policies and counting.

“The Florida property insurance market is in peril,” Mark Friedlander from the Insurance Information Institute said. “The crisis we are facing is escalating.”

The government-run and regulated, Citizens Property Insurance, is supposed to be a “last resort.”

But with private insurance companies going under or dropping in ratings, a representative from Citizens tells 10 Tampa Bay they’ve added 241,000 new policies since the beginning of this year.

Friedlander says that’s not good.

“Not only has citizens become the largest home insurance in the state of Florida, but they are 53% higher than the next highest insurer,” he said.

With all those policies, if we get hit by a severe storm, this government-run insurer could have to pay out a lot of claims.

Mike Peltier, a representative from Citizens, says the insurer has the money to handle a 1-in-100 year storm along the coast, and a 1-in-64 year storm farther inland.  But if the costs exceed that, paying those claims could trickle down to everyone’s pockets.

“In the event that Citizens exhausts its ability to pay claims, we are required to levy assessments, or if you want to call it a hurricane tax-on…on first our policy holders, and then other Florida insurance consumers,” he said.  



Source link

CHOOSE YOUR CHOICE GIFT CARD OFFER TODAY

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

Should You Hire a Property Manager? | Real Estate

Owning rental property can be a great way to diversify your investment portfolio or create a passive...

Great American Life Unveils new Brand as MassMutual Ascend

CINCINNATI--(BUSINESS WIRE)--Great American Life Insurance Company announced today that...

New Cars Now Cost Drivers $702 a Month on Average. Here’s How to Save on Insurance Costs

Image source: Getty Images All we can say is "yikes." Key points Limited supply has driven the cost of new...