Perplexed, I understand by the comments that everyone is at a loss and we are all average consumers in Florida. I can only afford one home. However, when irresponsible legislation comes down that can cause further problems, how is that going to help the situation.
The reality is we live in a weather sensitive state. We dodged severe weather conditions for over 40 years, then reality set in. $1,000, $2,000, $3,000 a year homeowners premium for $200,000 of coverage is a lot. But when we cannot get insurance of any kind due to bad legislation, then faced with Forced Placed insurance by our mortgage companies which is double the price, who bails us out then. This society, while having some wealth, has become so litigous that reinsurers are panicing. We should not demand that we turn over our insurance concerns to the government. We are lucky with low taxes in FL, but if the government underfunds Citizens, then has the ability to assess the consumer like they have done this past year to our business and homeowners insurance, we should be outraged. Why not let the private carriers underwrite and insure the high risk areas; spread the 1,300,000 Citizen policyholders among the private carriers create competition and let the insurance companies do what they do best. Right now insurance companies are limiting their exposure, thereby increasing rates, while an underfunded inadequate Citizens becomes the number 1 insurer in the State of Florida.
As for the Federal Government stepping in, I wouldn\’t trust the democratic majority taking over our insurance issues here or anywhere in the country. They spend like drunken sailors in Washington, because when they have an extra 10cents they will spend 20 cents. So I too am Perplexed???
a basic concept of a free society like the good ol USA is that if something isn\’t affordable, they you don\’t buy it and go do something different.
maybe the same thing applies to buying insurance in Florida.
the NFIP is probably the last \”insurance\” program you would want to emulate.
So the press thinks agents are getting rich off of higher premiums? Is anyone interested in buying insurance agencies these days. The answer is \”Sure\” for half of its value or owner financing. One thing is for sure, the cat fund will be expanded and opened up to carriers at a savings over what the reinsurance market currently is whacking us for. But to think that Citizens can do it cheaper than any real insurance company is baseless and laughable. They are the highest priced (or were)and the largest in the state (and will be for awhile) and they are about $2,400,000,000 in the hole from two storm years. Yet 2006 shows more than $7 billion in revenue. Sounds like book cooking to me. And does anyone wonder why our elected officials are doing everything they can to make Citizens the only place to shop? because they are making a killing in calm years and pass the buck onto Floridians in bad years in the form of assessments. This is the best business strategy anyone has ever come up with. The cash register is ringing like crazy but we foot the bill later when they say they have no money. You just gotta love politicians and the suckers that believe their lies.
What is outrageous is the premiums on your second home have been surpressed. Perhaps the premium your a currently being charged is the correct premium not the rates you paid in the past. Why not seek another insurer, as I understand it insurers are double parked at the state line waiting for the legislature to finish.
JR, have you given any thought that all the major insurance companies are doing the same thing. Making tons of money on the good years then screaming when they have a bad one. The insurance industry is saying how much money they lost, but all reported record profits for 2005 when hurricane Katrina hit. I see people here selling their homes because they can\’t afford the insurance. Myself and my two sisters were born and raised in FL. I see my sisters moving out of state now because they are retired and can no longer afford their home. I will probably follow them. We don\’t and have never been able to afford to live on the water but we continue to pay for those living on the barrier islands. We have a major problem when people have to give up their homes because they can\’t afford the insurance and I don\’t care where they live. It is just plain wrong.
Interested, thanks for the commentary. What\’s difficult to digest is the 300% increase in just one year and not knowing if the same thing will/will not happen at next renewal. When will it stop? I forsee that it will get to a point where it is affordable only to the wealthier sectors. What will that do for Florida\’s economy & overall fiscal well-being? We are facing the same thing here in NY. I see NY going the way of FL relative to property insurance premiums & ever shrinking availability. I have one carrier who is non-renewing ALL property insurance policies we have with them over the next 3 years. Due to the forecasting of more hurricanes possibly making landfall and the skyrocketing cost of reinsurance, the carrier has made a business decision to no longer insure property on LI. We must replace every piece of property business that we have with that carrier. The problem is, there are very few carriers willing to take on Long Island risks. We are populating the excess market and the rates are upwards of 200% to $300% & more above the current rate. FL is much further along in movement towards the \’critical mass\’ stage, but NY is well on its way.
Two thoughts on this topic: If I read the article correctly, the politicians want to force the private carriers to write HO where they write auto. They will stop writing auto. Therefore are the politicians prepared to have Citizens take on auto too?
The main reason the market swings back and forth from year to year is that nobody is legally able to carry forward reserves from a good year to prepare for a potential bad year. That is what the politicians should be looking at.
Scot, pardon my ignorance, but why are insurers not legally able to carry forward reserves from one year to the next?
How much in reserves is enough? Who determines the required reserve amount?
What happens to the reserves from a good year if they are not able to be carried forward? Does an uneventful year as far as catastrophes go present a financial windfall for insurers?
Should the unused reserves go back to the policyholders? hmmmmmm
Louisiana is increasing Citizens rates while Florida is decreasing Citizens rates? In neither state was Citizens properly funded, but legislators in Florida think they can soundbite their way out of the problem. I look forward to seeing how Citizens will handle not only the volume of claims but the dollar problems too. Won\’t that all get passed onto Floridians through presumably higher
taxes? How is that rate relief?
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Tired in Florida….touche
Perplexed, I understand by the comments that everyone is at a loss and we are all average consumers in Florida. I can only afford one home. However, when irresponsible legislation comes down that can cause further problems, how is that going to help the situation.
The reality is we live in a weather sensitive state. We dodged severe weather conditions for over 40 years, then reality set in. $1,000, $2,000, $3,000 a year homeowners premium for $200,000 of coverage is a lot. But when we cannot get insurance of any kind due to bad legislation, then faced with Forced Placed insurance by our mortgage companies which is double the price, who bails us out then. This society, while having some wealth, has become so litigous that reinsurers are panicing. We should not demand that we turn over our insurance concerns to the government. We are lucky with low taxes in FL, but if the government underfunds Citizens, then has the ability to assess the consumer like they have done this past year to our business and homeowners insurance, we should be outraged. Why not let the private carriers underwrite and insure the high risk areas; spread the 1,300,000 Citizen policyholders among the private carriers create competition and let the insurance companies do what they do best. Right now insurance companies are limiting their exposure, thereby increasing rates, while an underfunded inadequate Citizens becomes the number 1 insurer in the State of Florida.
As for the Federal Government stepping in, I wouldn\’t trust the democratic majority taking over our insurance issues here or anywhere in the country. They spend like drunken sailors in Washington, because when they have an extra 10cents they will spend 20 cents. So I too am Perplexed???
a basic concept of a free society like the good ol USA is that if something isn\’t affordable, they you don\’t buy it and go do something different.
maybe the same thing applies to buying insurance in Florida.
the NFIP is probably the last \”insurance\” program you would want to emulate.
So the press thinks agents are getting rich off of higher premiums? Is anyone interested in buying insurance agencies these days. The answer is \”Sure\” for half of its value or owner financing. One thing is for sure, the cat fund will be expanded and opened up to carriers at a savings over what the reinsurance market currently is whacking us for. But to think that Citizens can do it cheaper than any real insurance company is baseless and laughable. They are the highest priced (or were)and the largest in the state (and will be for awhile) and they are about $2,400,000,000 in the hole from two storm years. Yet 2006 shows more than $7 billion in revenue. Sounds like book cooking to me. And does anyone wonder why our elected officials are doing everything they can to make Citizens the only place to shop? because they are making a killing in calm years and pass the buck onto Floridians in bad years in the form of assessments. This is the best business strategy anyone has ever come up with. The cash register is ringing like crazy but we foot the bill later when they say they have no money. You just gotta love politicians and the suckers that believe their lies.
to \”12%
What is outrageous is the premiums on your second home have been surpressed. Perhaps the premium your a currently being charged is the correct premium not the rates you paid in the past. Why not seek another insurer, as I understand it insurers are double parked at the state line waiting for the legislature to finish.
JR, have you given any thought that all the major insurance companies are doing the same thing. Making tons of money on the good years then screaming when they have a bad one. The insurance industry is saying how much money they lost, but all reported record profits for 2005 when hurricane Katrina hit. I see people here selling their homes because they can\’t afford the insurance. Myself and my two sisters were born and raised in FL. I see my sisters moving out of state now because they are retired and can no longer afford their home. I will probably follow them. We don\’t and have never been able to afford to live on the water but we continue to pay for those living on the barrier islands. We have a major problem when people have to give up their homes because they can\’t afford the insurance and I don\’t care where they live. It is just plain wrong.
Interested, thanks for the commentary. What\’s difficult to digest is the 300% increase in just one year and not knowing if the same thing will/will not happen at next renewal. When will it stop? I forsee that it will get to a point where it is affordable only to the wealthier sectors. What will that do for Florida\’s economy & overall fiscal well-being? We are facing the same thing here in NY. I see NY going the way of FL relative to property insurance premiums & ever shrinking availability. I have one carrier who is non-renewing ALL property insurance policies we have with them over the next 3 years. Due to the forecasting of more hurricanes possibly making landfall and the skyrocketing cost of reinsurance, the carrier has made a business decision to no longer insure property on LI. We must replace every piece of property business that we have with that carrier. The problem is, there are very few carriers willing to take on Long Island risks. We are populating the excess market and the rates are upwards of 200% to $300% & more above the current rate. FL is much further along in movement towards the \’critical mass\’ stage, but NY is well on its way.
Two thoughts on this topic: If I read the article correctly, the politicians want to force the private carriers to write HO where they write auto. They will stop writing auto. Therefore are the politicians prepared to have Citizens take on auto too?
The main reason the market swings back and forth from year to year is that nobody is legally able to carry forward reserves from a good year to prepare for a potential bad year. That is what the politicians should be looking at.
Scot, pardon my ignorance, but why are insurers not legally able to carry forward reserves from one year to the next?
How much in reserves is enough? Who determines the required reserve amount?
What happens to the reserves from a good year if they are not able to be carried forward? Does an uneventful year as far as catastrophes go present a financial windfall for insurers?
Should the unused reserves go back to the policyholders? hmmmmmm
Louisiana is increasing Citizens rates while Florida is decreasing Citizens rates? In neither state was Citizens properly funded, but legislators in Florida think they can soundbite their way out of the problem. I look forward to seeing how Citizens will handle not only the volume of claims but the dollar problems too. Won\’t that all get passed onto Floridians through presumably higher
taxes? How is that rate relief?