The only thing worse than Citizens providing the windstorm coverage is having Citizens on all the perils including fire, theft, etc. Citizens is difficult to do business with on claims, however, at least now you only have to deal with them after a hurricane, how would you like watered down and over priced coverage on your entire hazard insurance policy.
The State of Florida needs to find a way to entice the national carriers to step back into the market and prevent insurance companies from cherry picking the newest homes.
The quick fix of inadequate rates and no reseves may make everyone happy in the short run, but what happens when we have several storms in a row again or a major storm in a highly populated area?
We need a federal backstop or a national catastrophe plan.
With the exception of some eligible areas in Dade, Palm Beach and Broward counties wind only eligible areas are mostly on the barriers islands. The inadequate rates charged on the Citizens Wind Only policies represent a significant entitlement to affluent residents. Most of the deficit assessment charges are from the deficit of the Wind Only account. So not only are the wind only policyholders getting an unfair entitlement, but the rest of the state is paying for the deficit through policy assessments. What is amazing is that the elected representatives of the wind only residents are pushing so hard to continue the entitlement, regardless of political ilk. Maybe in this day, that\’s not so amazing.
Actually the homes insured for $1,000,000 and more on the barrier islands and elsewhere have the lowest loss ratio according to Citizens. It\’s just easier to bash those with the newer large homes, however, removing them from the risk pool will cause Citizens to operate and an even greater loss. No joke, Citizens is very aware of this however, it\’s politically correct to bash the affluent so go figure. There are plenty of carriers willing to take these newer high value homes. What we need are true incentives to make our older homes more capeable of handling the high winds.
Nice try, Response, but there are approximately 403,509 policies in the High Risk Account (Wind Only). There are only 6,000 polices with insured values over $1 million. So the over $1 million segment is insignificant to the whole. The average insured value for the High Risk Account is $441,000, which is significantly higher than the average in Florida and the Citizens Personal Lines Account (Full perils) of $184,424. Let\’s just say the inadequate wind only rates are entitlement for owners of property with insured values over the average.
Still the balance of the state has to support, thru assessments, those inadequate rates. Also I am sure that the property taxes on these properties are norht of the insurance cost.
No bashing, just no spin either.
What are the drawbacks to initiating a national insurance plan, whereby every homeowner in the nation shares in the cost of insuring catastrophe prone areas? Isn\’t insurance based on the concept of pooling resources anyway?
It seems that with the weather the nation has been experiencing, no area in the US is exempt from some type of catastrophe.
Pardon me if this sounds obtuse & simplistic; I\’m just trying to get a handle on it.
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
Go to the Monroe County Property appraiser and search for Cynthia Derocher:
http://www.mcpafl.org/datacenter/search/search.asp
Tax Roll Year: 2006
Building : 447,749
Miscellaneous Improvements : 4,119
Land : 370,425
Just : 822,293
Exemptions (not Including Seniors) : 25,000
Taxable : 588,343
She\’s got an $800,000 house in Key West and she wants help paying her insurance. I have no sympathy.
The only thing worse than Citizens providing the windstorm coverage is having Citizens on all the perils including fire, theft, etc. Citizens is difficult to do business with on claims, however, at least now you only have to deal with them after a hurricane, how would you like watered down and over priced coverage on your entire hazard insurance policy.
The State of Florida needs to find a way to entice the national carriers to step back into the market and prevent insurance companies from cherry picking the newest homes.
The quick fix of inadequate rates and no reseves may make everyone happy in the short run, but what happens when we have several storms in a row again or a major storm in a highly populated area?
We need a federal backstop or a national catastrophe plan.
JD
With the exception of some eligible areas in Dade, Palm Beach and Broward counties wind only eligible areas are mostly on the barriers islands. The inadequate rates charged on the Citizens Wind Only policies represent a significant entitlement to affluent residents. Most of the deficit assessment charges are from the deficit of the Wind Only account. So not only are the wind only policyholders getting an unfair entitlement, but the rest of the state is paying for the deficit through policy assessments. What is amazing is that the elected representatives of the wind only residents are pushing so hard to continue the entitlement, regardless of political ilk. Maybe in this day, that\’s not so amazing.
Actually the homes insured for $1,000,000 and more on the barrier islands and elsewhere have the lowest loss ratio according to Citizens. It\’s just easier to bash those with the newer large homes, however, removing them from the risk pool will cause Citizens to operate and an even greater loss. No joke, Citizens is very aware of this however, it\’s politically correct to bash the affluent so go figure. There are plenty of carriers willing to take these newer high value homes. What we need are true incentives to make our older homes more capeable of handling the high winds.
Nice try, Response, but there are approximately 403,509 policies in the High Risk Account (Wind Only). There are only 6,000 polices with insured values over $1 million. So the over $1 million segment is insignificant to the whole. The average insured value for the High Risk Account is $441,000, which is significantly higher than the average in Florida and the Citizens Personal Lines Account (Full perils) of $184,424. Let\’s just say the inadequate wind only rates are entitlement for owners of property with insured values over the average.
Still the balance of the state has to support, thru assessments, those inadequate rates. Also I am sure that the property taxes on these properties are norht of the insurance cost.
No bashing, just no spin either.
What are the drawbacks to initiating a national insurance plan, whereby every homeowner in the nation shares in the cost of insuring catastrophe prone areas? Isn\’t insurance based on the concept of pooling resources anyway?
It seems that with the weather the nation has been experiencing, no area in the US is exempt from some type of catastrophe.
Pardon me if this sounds obtuse & simplistic; I\’m just trying to get a handle on it.