The National Flood Insurance Program runs at a deficit, just like Citizens. The NFIP writes limits up to only $250,000, much less than Citizens. NFIP coverage is very limited — e.g., doesn’t cover property in a basement…not that important to most of FL, but a huge issue in other states. NFIP service leaves a lot to be desired. So, if the agents think NFIP should be a model, the I have a bridge to sell them.
Listen, if Citizens is broken, then concentrate on fixing it. All this talk of an alternative is just a waste of time.
For beach dwellers: Charge the 100% RC of a house as the premium. Put the money into an interest bearing trust account. The next time the house is blown/washed away (as we all know it will) that amount is given back to the homeowner to rebuild. Let them take care of their own problems. No more bailing out Citizens!
The answer is fixing Citizens. If you have a $515 million dollar deficit, you are not charging the correct rates for the exposure. Since CPIC has the highest rates, that only means everyone else is underpriced as well. Get over-regulation out of the state and watch comptetion work and tons of money to the state, Economics 101!
Well, I must say at least they are looking at options. I don’t think they are suggesting that the program run like NFIP, they know it has problems, but some of the concepts are good. Jay should have some valuable insight into this fiasco. I’m sure it won’t be a quick fix, but we need to see the plan before we poo poo it as worthless. Citizens is broke for sure, but so is the whole industry in Florida, thanks once again to politicians.
I echo DC’s comments – they are right on. The only way for CPIC to work is have it operate as a residual market, with “market” rates – not the imaginary benchmark that is used today. Carriers must be able to compete in this state or they will follow the leads of Allstate, Nationwide, Safeco and the many before them and those that will follow. Companies can no longer to put their capital at risk in FL without consistent and reasonable return expectations. Stop using CPIC as a political tool and run it like a catastrophe underwriter.
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Will this be the only way to get wind coverage??? If not, what are your thoughts on whether or not companies will offer it? Do they have to offer it?
The National Flood Insurance Program runs at a deficit, just like Citizens. The NFIP writes limits up to only $250,000, much less than Citizens. NFIP coverage is very limited — e.g., doesn’t cover property in a basement…not that important to most of FL, but a huge issue in other states. NFIP service leaves a lot to be desired. So, if the agents think NFIP should be a model, the I have a bridge to sell them.
Listen, if Citizens is broken, then concentrate on fixing it. All this talk of an alternative is just a waste of time.
For beach dwellers: Charge the 100% RC of a house as the premium. Put the money into an interest bearing trust account. The next time the house is blown/washed away (as we all know it will) that amount is given back to the homeowner to rebuild. Let them take care of their own problems. No more bailing out Citizens!
The answer is fixing Citizens. If you have a $515 million dollar deficit, you are not charging the correct rates for the exposure. Since CPIC has the highest rates, that only means everyone else is underpriced as well. Get over-regulation out of the state and watch comptetion work and tons of money to the state, Economics 101!
Well, I must say at least they are looking at options. I don’t think they are suggesting that the program run like NFIP, they know it has problems, but some of the concepts are good. Jay should have some valuable insight into this fiasco. I’m sure it won’t be a quick fix, but we need to see the plan before we poo poo it as worthless. Citizens is broke for sure, but so is the whole industry in Florida, thanks once again to politicians.
I echo DC’s comments – they are right on. The only way for CPIC to work is have it operate as a residual market, with “market” rates – not the imaginary benchmark that is used today. Carriers must be able to compete in this state or they will follow the leads of Allstate, Nationwide, Safeco and the many before them and those that will follow. Companies can no longer to put their capital at risk in FL without consistent and reasonable return expectations. Stop using CPIC as a political tool and run it like a catastrophe underwriter.
Poker has better odds than a new company insuring in Florida.