Considering Citizens uses 100% of their reinsurance through FHCF, I would rather see my clients go to a startup who at least has some private re-insurance.
Those of us who still choose to sell personal lines don’t have a lot of good options.
I’m a Texas agent that shares your concern. This situation is worse in Florida than Texas. The disturbing thing is that the average citizen of any state in the ‘hurricane belt’ doesn’t understand how bad it is. The Texas legislature improved some of the financing of the Windstorm Assocation here this past spring. However, it amounted to putting a little better bandage on a badly infected cut. I’ve been taking every opportunity to educate my customers on the problem – particularly the ones that will contact their legislative representative.
One of my customers that has a home on the Texas coast is an architectural engieer. He has some ideas I’d like to share. First, it may be impossible to adequately fund any strong insurance system – given the current construction of coastal buildings. Second, living close to the coast may have to undergo vast changes. That is, most people should think about giving up their single family dwellings. Sell the land and move into elevated and reinforced commercial grade condos. No residences or retail businesses on the ground floors. Bottom line is that it is going to take a combination of reducing the risks and better funding to solve this problem. If this were to happen, Florida could see major insurance carriers re-enter their market.
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Considering Citizens uses 100% of their reinsurance through FHCF, I would rather see my clients go to a startup who at least has some private re-insurance.
Those of us who still choose to sell personal lines don’t have a lot of good options.
I’m a Texas agent that shares your concern. This situation is worse in Florida than Texas. The disturbing thing is that the average citizen of any state in the ‘hurricane belt’ doesn’t understand how bad it is. The Texas legislature improved some of the financing of the Windstorm Assocation here this past spring. However, it amounted to putting a little better bandage on a badly infected cut. I’ve been taking every opportunity to educate my customers on the problem – particularly the ones that will contact their legislative representative.
One of my customers that has a home on the Texas coast is an architectural engieer. He has some ideas I’d like to share. First, it may be impossible to adequately fund any strong insurance system – given the current construction of coastal buildings. Second, living close to the coast may have to undergo vast changes. That is, most people should think about giving up their single family dwellings. Sell the land and move into elevated and reinforced commercial grade condos. No residences or retail businesses on the ground floors. Bottom line is that it is going to take a combination of reducing the risks and better funding to solve this problem. If this were to happen, Florida could see major insurance carriers re-enter their market.