It is puzzling to me as to why coastal homeowners in FL will see a 20% rate decrease in their windstorm premiums. Logic dictates that the closer a risk is to water the greater the chance of a loss caused by hurricane. Logic dictates that coastal homeowners should pay more for their coverage…you know, the greater the exposure to loss, the higher the premium should be. This is insurance 101.
Insurers must move in the direction of applying higher windstorm rates for risks close to the coastline and the rates should decrease as you gravitate away from the coast.
The other puzzling thing is that the lawmakers canceled a 56% Citizens rate hike and rolled back a recent 21% rate hike. This doesn\’t make sense. I thought the reason for the hikes in the first place was b/c Citizens was not charging enough to pay claims. What happens if a storm of Katrina caliber hits next season? Will there be enough for Citizens to pay all claims?
I never knew that we actually elected that many Acturaries to the Legislature so they could acurately predict losses. So all this hopla about reducing rates when we all know that anyone insured outside of Citizens will not have a decrease in premium of any sort!
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It is puzzling to me as to why coastal homeowners in FL will see a 20% rate decrease in their windstorm premiums. Logic dictates that the closer a risk is to water the greater the chance of a loss caused by hurricane. Logic dictates that coastal homeowners should pay more for their coverage…you know, the greater the exposure to loss, the higher the premium should be. This is insurance 101.
Insurers must move in the direction of applying higher windstorm rates for risks close to the coastline and the rates should decrease as you gravitate away from the coast.
The other puzzling thing is that the lawmakers canceled a 56% Citizens rate hike and rolled back a recent 21% rate hike. This doesn\’t make sense. I thought the reason for the hikes in the first place was b/c Citizens was not charging enough to pay claims. What happens if a storm of Katrina caliber hits next season? Will there be enough for Citizens to pay all claims?
This is just mind boggling.
I never knew that we actually elected that many Acturaries to the Legislature so they could acurately predict losses. So all this hopla about reducing rates when we all know that anyone insured outside of Citizens will not have a decrease in premium of any sort!