Citizens property Insurance

Will Florida ever find cheap home insurance again?

Thursday, May 9, 2013

Well... the answer to that question would be, not likely!  Finding cheap insurance in Florida is like winning Powerball for most.  

Lawmakers recently passed a new bill that focused on citizens and homeowners insurance in Florida.  The members of lawmaking in Tallahassee have been reviewing Citizens Property Insurance company and the home insurance market in its entirety for the Sunshine State.  A proposal, Senate Bill 1770 has been cited as a highly controversial issue within the states Legislature. 

The largest insurance company doing business in the state is Citizens Property Insurance.  This state-run organization accounts for the majority of the policies insured in the state.  This new bill would forced the state run insurance company to considerably raise rates on coverage.  For obviously reasons, Floridians didn't really take to the increasing in premiums Citizens wanted to apply.  Due to the up rise by consumers in Florida, the bill as it stands has been thrown out of Legislature until they come up with a better program for residents in the state.  

A recent updated Senate Bill 1770 this week passed with flying colors.  The Governor and the house worked closely to figure out a consumer friendly bill that would address the financial issues of Citizens, without offering a huge increase in premiums.  In short, the bill aims to reduce the liability exposure for Citizens, thus offering more financial security to the state.  This new bill has offered some changes to the homeowners insurance sector while looking our for the little guy.  

So, while you probably won't find cheap homeowners insurance in Florida, at least our state legislative is working in the right direction to fix it.  What are your thoughts on Citizens Property Insurance?

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by Morgan Moran


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Gov. Scott announces awareness

Saturday, December 8, 2012


Florida’s Governor, Mr. Rick Scott, alongside many other lawmakers in Tallahassee Florida this week, have announced they are going to implement better programs to make sure residents of Florida are better prepared to understand many of the costs linked with homeowners insurance.  They really want to educate the public to understand that Florida might be one large “Sandy” like storm away from a major home insurance catastrophe.

Scott was quoted saying that solid efforts should ensure that Florida home insurance policyholders are better aware that the state is doing everything possible to help strengthen the house market industry in the Sunshine state.

He pointed out that these educational programs will probably cause higher assessments across the spectrum when the state-backed insurers are not really capable of producing and meeting its claims payments requirements in the future.

The survey conducted offered that more than 80 percent of homeowners insurance customers in Florida have no clue that possible assessments are lingering in the near future. 

These consumers don’t completely understand that if the Florida Hurricane Catastrophe Fund and Citizens Property Insurance Corp. find themselves unable with to pay claims after a major storm hits either Florida coast, that it will be the policyholders that are charged large assessments.

We all know the struggles many insurance companies have had over the years in Florida.  There is a great deal of controversy over making the proper changes necessary to Citzens and private insurers.  This all being connected to the ability to offer affordable homeowners insurance to a state where 80 percent or more of the residents live within hurricane prone areas.  What should we do to fix this problem?


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3 Reasons Citizens Loan Plan in Florida won't work

Wednesday, October 17, 2012

Ponte Vedra Beach, FL -- We have been lucky in Florida lately, NO HURRICANES!  The risk is looking better for insurance companies and they are now lining up to purchase many Floridian homeowners insurance policies.   Applications are being filed as we speak to take over policies.  Will your policy be part of the Citizens take out program?

A new plan has been offered by the executive board of Citizens Property Insurance.  This proposal from the Florida insurance company of last resort might cause issues with the industry and taxpayers.

Last month, men and women on the board voted to award over three hundred million in low-interest loans to help small private insurance companies take on some of the risk.  These incentives needed to be large enough for some of the private sector carriers to get interested.  That’s a bunch of money to hand over to the marketplace that is hurting so vastly.  What do you think?

Here are three reasons why this is bad for the state of Florida and home insurance policy holders:

1. First, the incentives aren’t needed. Private insurance companies already plan to consider adopting in excess of 300,000 policies from Citizens the New Year alone - with no incentives. Consequently, handing out this incentive money, Men and women surplus - funds which will be needed in case your major storm hits - will likely be depleted for a bad one reason. Not to mention the policies and this includes proposed plan tend to be attractive to private insurers without incentives, because these are definitely some of Men and women best policies out of a risk perspective.

2. Second, this plan eliminates a level playing field for insurance carriers coming into the state of FL. The men and women on the board came up with the plan with no input by way of Legislature, that is a, or ratepayers, and plans to push it through no matter what public sentiment, and that is overwhelmingly resistant to the idea.

3. And third, virtually no insurance carrier in line to bring into play the policies continues to be audited in multiple years by regulators. Floridians can offer no assurances that these insurers - several of which have had massive underwriting losses during the last five years - are financially healthy enough to face up to storm losses.

Wouldn’t it be better to have open competition, so the healthiest insurers offering the top rated investor business plans to take advantage of policies?

Laboring under the Citizens Property loan program, private insurers could borrow as high as $50 million for 20 years any kind of low interest rate of 2 percent. In return, Citizens obligates the insurers to take the policies for only 10 years, and enables them to raise rates beyond 10 percent a year, after three years. Additionally, the diet plan fails to add in provisions for what happens in case your insurers encounter financial difficulties that hopefully will prevent them from repaying a loan.

What are your thoughts residing over this program?  Do you think this is good for the state of Florida and our taxpayers?  We would like you to give us your take on these low interest loans to private insurance companies already doing business in the Sunshine state. 


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Citizens to Private Insurance

Monday, October 8, 2012

Jacksonville, Florida -- Like lots and lots of other South Florida policy holders covered by state-run Citizens Property, I got a letter a while back because of a private insurance carrier informing me make use of them be taking over my policy in 30 days - unless I opt out.  Have other Florida homeowners had this same issue?

Sounds great, I thought, when I received the letter from Tampa-based Homeowners Choice Property & Casualty. Especially after hearing that Citizens ended up being approved for rate hikes averaging above 10 percent next year.

Florida Consumers can't make a confident decision, because these carriers won't answer the actual largest question - about all of the cost of contracts every time they renew next year.

When I called Homeowners Choice, a customer service representative explained my current Citizens policy would remain in force until it lapses next July. She said the business enterprise would mail me a renewal offer in May, but that she couldn't say exactly what the premium might possibly be. Nor could she necessary under some company's current rates to find a policy comparable to my Citizens coverage. And he or she didn't know but if your company has put setting yourself up for a rate increase for next year.

What type system is that? Do you really want to try and find a car or a home with no knowledge of the actual going rate?

My answer: Thanks, but I’ll have to pass on this option.

On Saturday I spoke to company CEO Paresh Patel, asking how consumers should decide with such limited information. He said he understood the concerns, but there is much uncertainty for next year and the carriers aren’t going to try and mislead consumers. The way in which, he was quoted saying, "Our rates are on the same as Citizens." He was quoted saying the company has asked to have an average 6 percent rate increase, but state regulators could require more.

Are you frustrated with the way Citizens conducts business in Florida?  Remember, they are the carrier that is a last resort, and they seem to do the best they can under the circumstances.  If you received this infamous letter from Citizens, comment on our Blog today and let us know how you really feel about this situation.


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Allstate and Universal offer Rate Increases

Saturday, October 6, 2012

JACKSONVILLE, FL - Looks like home insurance rates are going up again for Universal Property, along with Allstate Insurance. 

Government regulators have approved rate increases topping 7 percent for just two more home insurers: Universal and Allstate.

That's from some 5 percent increase on home insurance policies for State Farm and another hike expected this week for state-backed Citizens Property Insurance Corporation, Florida's largest home insurance carrier.

Universal, the state's second-largest insurance carrier associated home owners, was granted an average of 23 percent in rate increase, bringing the vast majority of the cost due to the homeowner policies to $2,170, said the DOI.

Allstate's Castle Key Insurance was given an average 14.9 portion increase, and also also of which Fortress Key Indemnity some kind of typical 8.2 percent increase, bringing their average policy premiums to about $1,400 a year. Allstate's units combined rank mainly because the state's No. 4 insurer after State Farm, Florida data shows.

Amounts paid upon individual policies will fluctuate in all geographic areas.  Southern area Fla homeowners generally pay a lot more money as a result higher hurricane risk than many other parts of the state, experts say.

Increases also vary based on the type of policy you have. As an illustration, Castle Key Insurance was granted a 12.9 increase on insurance for homes along with a 34.1 percent raise on policies for condominiums.

Insurers assume increases tend to be needed, because companies are having to pay out a lot more in claims and costs when compared to they how much they are collecting in premiums. One reason: a rise in fees for re-insurance, the insurance that the companies buy from global firms.

Re-insurers tend to be charging more soon after costly catastrophes globally, such has last year's tsunami in Japan, based in the Insurance Information Institute, an industry trade  group.

Allstate's Insurance coverage had sought for a 32.7 percent increase, all the while Castle Major point Indemnity had asked to enjoyment in a 21.9 percent raise.

Allstate's units also had been given rate increases on home insurance coverage final 12 months as effectively because in 2010. Castle Major point Insurance received a 14.5 percent raise last year and 18.7 percent in 2010. Castle Key Indemnity was approved with regard to 35.7 percent hike not too long ago and 17.8 percent raise in 2010.

Meanwhile, Residents is now asking as for an eleven percent raise, plus affirmation to shed some 300,000 policyholders to slash its risk.

However Residents' plans are to cut out nearly one out of four existing customers and trigger questions Monday from The boy wonder Wescott, the state insurance consumer advocate.

Inside related with a letter to Residents' chief, she asked for specifics in how People evolved its figures on shedding existing customers and requested some alternate scenarios.


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FL Regulators Holding Hearing On Home Rates

Tuesday, September 25, 2012

Orlando, Florida - There are many Florida citizens that are coming together in opposition of the most recent proposed rate increases offered by Florida's biggest homeowners insurance company. A public hearing was held in Miami, Fl by regulators trying to appease lawmakers and consumers of the Sunshine state. 

A New Port Richey, Florida Republican, Senator Mike Fasano, critiqued Citizens Property Insurance Corp for the recent increase in premiums.  He believes that Citizens raised premiums without going through the proper rate approval process.  Additionally, he cited the re-inspection program that has revoked discounts to many Floridians for strengthening their houses against natural disaster. 

Senator Fasano also complained about the out of line spending that Citizens officials were engaged in, including, expensive trips, hotel rooms and meals. 

"Citizens has filed a premium rate increase that, given they myriad negative circumstances surrounding this insurance company, is not warranted and, frankly, is the epitome of arrogance," Fasano said.

The CEO of Citizens, Barry Gilway, said that company officials always follow state law when they propose increases.  They are just trying to put the company on track to make sure they have enough money to pay for future disastrous claims. 

"We're not the enemy, "Gilway said.  "We're hired by and work for taxpayers and it's our obligation to do our very, very best to keep rates as affordable as possible."

We at would like to get any feedback available Floridians.  Please give us your thoughts on Citizens and how we can improve the homeowners insurance policies offered in our beautiful state.  Comment here today!




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