Here\’s a reminder….Citizens was only created because the GREEDY private market stopped writing policies in Florida. Don\’t blame Citizens for trying to keep up with the dropping of policies of the private market because they want to continue to gouge us here in Florida! As for our Governor I say \”BRAVO\”, finally someone in politics that will stand up to the greedy profiteers and not be swayed by the pocket stuffing your industry does!
Of course Citizens is a good bargain for Kathy; she is willfully blind to the reality that every single insurance company writing in FL, and by extension their customers, subsidize Kathy\’s insurance premium.
Kathy, please self-insure. If your Robin Hood of a governor is picking my pocket to help the likes of you, I would prefer that the money goes to someone that is less of an ingrate.
Do the math, 1.3 million policies in place, say we take an average of 250000.00 in coverage per policy, that equals 325 Billion in payouts in case of a large storm that could hit the east as well as west coast of florida
Bob: The average coverage per policy probably isn\’t $250K, and the odds that all 1.3 million properties would suffer catastrophic total loss under FL Valued Policy Law is incredibly long. No company keeps that kind of money tied up for potential claims. Don\’t forget that Citizens can assess to make up the shortfall.
The operative word in this artical appears to be \”financing plan.\” Where does a company that is already bankrupt go to get a loan for two more billion. If they are giving money that freely, imagine how much they would give to financially stable companies.
First of all Citizens is not bankrupt…thinly capitalized, but not bankrupt. Most importantly, the cash that is being raised to improve claims paying ability is debt, which has to be serviced. That\’s the financial problem. Florida\’s \”Mortgage\”is getting larger and larger and nobody in a position of responsibility really cares as long as it looks as though the policitians (not statesmen) are \”lowering\” rates by artifically creating a soft market (Citizens)for personal property business.
How many people do you think live in Broward and Dade counties.My guess for an average policy is not that far off, according to where Citizens has policies and based on their exposure. I have seen their exposure by county and its not pretty.I know how they can assess every policy holder in the state, this is nothing but a bandaide so old Charlie does not look like the Jerk he is.
The reality is that Citizens really IS bankrupt in any real sense ofthe word. Any private insurer with Citizens\’ finances would have been liquidated long, long ago. Their additional borrowing capacity doesn\’t impress me – I could make my monthly credit card payments with another card, and then make *those* payments with a third card. This isn\’t much different.
Their little statistic about $9B available when \’04-\’05 cost them less than $6B also is misleading. Anyone will agree that they are MUCH larger now than they were then. I can\’t imagine what their PML is, even for a CAT 3 storm. Based on the information I\’ve got, I\’m not sure they even know. Frightening.
Anyone, anyone at all that feels warm and fuzzy about the financial position of Citizens is either incredibly naiive or in a state of denial previously unknown to human psychology.
The State of Florida gets further in debt putting all Floridians on the financial tab. I still don\’t understand why the state is in the insurance business. Of course the board is going to meet in June and look to cut expenses and agents are going to be the scapegoat. This will be a mess if a storm hits the coast.
to Fl cover- you\’re right on in your commentary! I used to work there, & it\’s sad how little they seem to know, or care. But the majority of the folks who work there are trying their best just to keep things going, while the politicians place an ever-increasing burden on them to get the job done with limited resources. God help us all if a big one hits!
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Here\’s a reminder….Citizens was only created because the GREEDY private market stopped writing policies in Florida. Don\’t blame Citizens for trying to keep up with the dropping of policies of the private market because they want to continue to gouge us here in Florida! As for our Governor I say \”BRAVO\”, finally someone in politics that will stand up to the greedy profiteers and not be swayed by the pocket stuffing your industry does!
Of course Citizens is a good bargain for Kathy; she is willfully blind to the reality that every single insurance company writing in FL, and by extension their customers, subsidize Kathy\’s insurance premium.
Kathy, please self-insure. If your Robin Hood of a governor is picking my pocket to help the likes of you, I would prefer that the money goes to someone that is less of an ingrate.
Do the math, 1.3 million policies in place, say we take an average of 250000.00 in coverage per policy, that equals 325 Billion in payouts in case of a large storm that could hit the east as well as west coast of florida
Bob: The average coverage per policy probably isn\’t $250K, and the odds that all 1.3 million properties would suffer catastrophic total loss under FL Valued Policy Law is incredibly long. No company keeps that kind of money tied up for potential claims. Don\’t forget that Citizens can assess to make up the shortfall.
The operative word in this artical appears to be \”financing plan.\” Where does a company that is already bankrupt go to get a loan for two more billion. If they are giving money that freely, imagine how much they would give to financially stable companies.
First of all Citizens is not bankrupt…thinly capitalized, but not bankrupt. Most importantly, the cash that is being raised to improve claims paying ability is debt, which has to be serviced. That\’s the financial problem. Florida\’s \”Mortgage\”is getting larger and larger and nobody in a position of responsibility really cares as long as it looks as though the policitians (not statesmen) are \”lowering\” rates by artifically creating a soft market (Citizens)for personal property business.
How many people do you think live in Broward and Dade counties.My guess for an average policy is not that far off, according to where Citizens has policies and based on their exposure. I have seen their exposure by county and its not pretty.I know how they can assess every policy holder in the state, this is nothing but a bandaide so old Charlie does not look like the Jerk he is.
The reality is that Citizens really IS bankrupt in any real sense ofthe word. Any private insurer with Citizens\’ finances would have been liquidated long, long ago. Their additional borrowing capacity doesn\’t impress me – I could make my monthly credit card payments with another card, and then make *those* payments with a third card. This isn\’t much different.
Their little statistic about $9B available when \’04-\’05 cost them less than $6B also is misleading. Anyone will agree that they are MUCH larger now than they were then. I can\’t imagine what their PML is, even for a CAT 3 storm. Based on the information I\’ve got, I\’m not sure they even know. Frightening.
Anyone, anyone at all that feels warm and fuzzy about the financial position of Citizens is either incredibly naiive or in a state of denial previously unknown to human psychology.
The State of Florida gets further in debt putting all Floridians on the financial tab. I still don\’t understand why the state is in the insurance business. Of course the board is going to meet in June and look to cut expenses and agents are going to be the scapegoat. This will be a mess if a storm hits the coast.
to Fl cover- you\’re right on in your commentary! I used to work there, & it\’s sad how little they seem to know, or care. But the majority of the folks who work there are trying their best just to keep things going, while the politicians place an ever-increasing burden on them to get the job done with limited resources. God help us all if a big one hits!