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FL Citizens Insurance is tired of being the primary provider
Posted on 8/8/24 at 8:32 am
Posted on 8/8/24 at 8:32 am
Florida's Biggest Insurer Says It Needs to Increase Rates by 93 Percent
quote:.
Florida's largest insurer has requested a 13.5 percent rate hike but says it needs a nearly 93 percent increase to match the competitive market.
Citizens Property Insurance Corp. is currently requesting a more modest hike from the Florida Office of Insurance Regulation (OIR) because state regulations cap the amount rates can increase annually.
Brian Donovan, Citizens' chief actuary, said in a hearing last week that this would increase the average price of homeowners multi-peril policies, the insurer's most common type of policy, from $3,560 to $4,041.
Other types of policies would also see increases in varying amounts in the double digits.
But he added that rates for Citizens' personal multi-peril policies would need to increase by 92.8 percent to be non-competitive.
Citizens President and CEO Tim Cerio said that the double-digit rate increase was necessary to reduce the insurer's financial risk and that the decision wasn't made "lightly."
"We're the state-sponsored insurer of last resort, and the insurer of last resort in any state should never be competing with the private market," Cerio said.
"The market is recovering, and that is really good news," Cerio added. "But Citizens' rates are actuarially unsound, and we are competing with the private market. The market's rates are up here, and we are down here. It's basically a form of subsidized insurance."
Citizens was established as a state-backed insurer of last resort for residents who couldn't get plans elsewhere with a more affordable option. It was created in response to home insurance prices being driven up in the state due to hurricanes and tropical storms.
Some company and state officials now want to reduce the size of Citizens, partly to minimize the financial risks associated with potential hurricanes affecting Florida
16
Posted on 8/8/24 at 8:36 am to stout
insurance is nothing more then a scam
when you finally need the coverage you have been paying decades for they are nowhere to be found or they want to price gouge you to death
pretty soon the deductibles will be $20,000 for hurricanes which means you have to pay for your roof
when you finally need the coverage you have been paying decades for they are nowhere to be found or they want to price gouge you to death
pretty soon the deductibles will be $20,000 for hurricanes which means you have to pay for your roof
Posted on 8/8/24 at 8:37 am to stout
quote:
it needs a nearly 93 percent increase
"Needs."
Posted on 8/8/24 at 8:37 am to stout
The insurance market is out of control on the gulf coast. Its making all of the states harder and harder to live in, which may be the point.
Florida has at least acted unlike...other states. They have passed 3 statutes in the past 3 years to encourage more insurers. Its worked to a certain degree but there is only so much they can do.
SELA has gotten INSANE on the rates.
Florida has at least acted unlike...other states. They have passed 3 statutes in the past 3 years to encourage more insurers. Its worked to a certain degree but there is only so much they can do.
SELA has gotten INSANE on the rates.
Posted on 8/8/24 at 8:41 am to stout
Everyone wants the value of their homes to increase but don't want to pay for the coverage.
Posted on 8/8/24 at 8:44 am to nicholastiger
quote:
insurance is nothing more then a scam when you finally need the coverage you have been paying decades for they are nowhere to be found or they want to price gouge you to death pretty soon the deductibles will be $20,000 for hurricanes which means you have to pay for your roof
Billions in claims are paid out annually but continue to show the board how low IQ you truly are.
Posted on 8/8/24 at 8:46 am to wheelr
Homes have been massively overvalued for decades. A drop in home value would be great
Posted on 8/8/24 at 8:49 am to Fun Bunch
quote:
Florida has at least acted unlike...other states. They have passed 3 statutes in the past 3 years to encourage more insurers. It’s worked to a certain degree but there is only so much they can do.
The carriers are making money hand over fist on the backs of the average consumer by charging astronomical rates. Florida homeowner rates have gone up over 100% since 2020 and in some more than 200%. The only thing Desantis and the legislature did was make it almost impossible to sue them when they deny your claim (which they will). Even Trump said the law change last year in Florida was a corporate handout and a disgrace.
Insurance companies aren’t noble citizens acting in the best interests of society. They are corporations whose sole existence is to maximize profits for the shareholders. They do this by not paying claims and buying favorable legislation from elected officials.
Posted on 8/8/24 at 8:52 am to nicholastiger
quote:
pretty soon the deductibles will be $20,000 for hurricanes which means you have to pay for your roof
Since Andrew, Florida has had 5% of your assessed home value deductible for any storm damage from a named storm. So You lose your roof you're paying out of pocket for the entire thing.
Posted on 8/8/24 at 8:54 am to stout
Risk shouldn't be "For Profit"
Posted on 8/8/24 at 8:56 am to theronswanson
quote:
Insurance companies aren’t noble citizens acting in the best interests of society. They are corporations whose sole existence is to maximize profits for the shareholders. They do this by not paying claims and buying favorable legislation from elected officials.
Insurance is a business and a business has to make money/profit or it ceases to be a viable business. I'm no fan of insurance companies but they are a necessary evil and always have been.
Posted on 8/8/24 at 8:58 am to stout
quote:
Citizens was established as a state-backed insurer of last resort for residents who couldn't get plans elsewhere with a more affordable option. It was created in response to home insurance prices being driven up in the state due to hurricanes and tropical storms.
These statements are in conflict...so was this created to help homeowners who couldn't find ins bc it was too expensive?
it was established to be a most expensive option but created because of rising costs???
quote:
"We're the state-sponsored insurer of last resort, and the insurer of last resort in any state should never be competing with the private market,"
Posted on 8/8/24 at 9:01 am to stout
Side Bar: Our new governor took big money from trial lawyer association, he's bought and paid for and will be against action items that help our insurance crisis situations.
Posted on 8/8/24 at 9:02 am to nicholastiger
quote:
insurance is nothing more then a scam
Go without it.
Posted on 8/8/24 at 9:02 am to Commandeaux
quote:
Risk shouldn't be "For Profit"
The insurance company in question here is a non profit organization.
Posted on 8/8/24 at 9:04 am to stout
quote:
"The market is recovering, and that is really good news," Cerio added. "But Citizens' rates are actuarially unsound, and we are competing with the private market. The market's rates are up here, and we are down here. It's basically a form of subsidized insurance."
He has somewhat of a point that the intent of Citizens isn't supposed to be a competing option, but somewhere for people to go when they have no other options. IMO, this quote says more about the rates being quoted in the private market.
Posted on 8/8/24 at 9:04 am to stout
quote:
We're the state-sponsored insurer of last resort, and the insurer of last resort in any state should never be competing with the private market,"
Is there actual legit competition? In sone places in LA, there is not.
Posted on 8/8/24 at 9:05 am to bengalbait
quote:
I'm no fan of insurance companies but they are a necessary evil and always have been.
quote:
necessary
It's only "necessary" because laws have been passed requiring anyone who carries a mortgage to be insured. It's not to protect homeowners...it's meant to protect banks who carry debt on the properties.
Posted on 8/8/24 at 9:06 am to sidewalkside
I think it's a punctuation thing. Citizens is not supposed to be the more affordable option, they are supposed to be the option if a resident cannot get an affordable plan in the private market. Or in many cases, cannot get any plan in the private market.
Posted on 8/8/24 at 9:08 am to nicholastiger
quote:
nicholastiger
So you self insure?
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