re: FL Citizens Insurance is tired of being the primary provider

quote:

---

And you forgot...when you do get them to pay it's " those cabinets are ....10 yrs old ( from flooded kitchen) so they are now worth $3,000 due to depreciation"

---

Cabinets are Replacement Cost Value (RCV). You may get paid Actual Cash Value (ACV) on the original estimate, but as soon as you replace them you should get the difference.

RCV vs ACV should have been explained to you when setting the claim and it should have been sent to you in writing.

quote:

---

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.

---

LMAO. So, I guess that explains why more insurers in Florida have gone bankrupt than at any other time recently? And the dig on DeSantis is just friggin stupid, as if any Governor could decree lower insurance premiums. Florida insurance premiums are high because of:

1) Florida has 1,350 miles of coastline
2) Florida had 30,000 / month moving to the state, driving up home values
3) Florida has had severe losses in the past 5 years
4) People continuing to build mansions on the coastline
5) People filing lawsuits, some of which are necessary, (some not), but that drives up costs
6) The cost of reinsurance has skyrocketed.
7) Construction costs to rebuild have skyrocketed

Yes, there are bad insurance companies, and it sucks when a storm hits and causes major damage, but to blame it solely on political leadership is ignorant.

quote:

---

Everyone wants the value of their homes to increase but don't want to pay for the coverage.

---

You need to do some research on the topic.

The underwriters have left the coastal areas. That’s the entire story.

They didn’t increase rates… they just stopped writing.

Roofing companies have to share some of the blame here. They were strong arming insurance companies to pay for new roofs every named storm. It's supposed to insure your house, not be a roof warranty vehicle.

The op isn’t fake, but citizens was never intended to be the number one insurer in FL. There’s nowhere else for these people to get coverage, and the premium charged currently doesn’t cover the amount of risk. It’s adverse selection due to all the risk being in Florida and being exposed to CAT losses

quote:

---

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.

---

Without government subsidies, only the uber wealthy and dirt poor would be living on the water. I still don't understand why my tax dollars help subsidize flood insurance for someone who builds a house by the water in a hurricane zone. If you do the math on Cat 3+ landfalls, most of the markets would have to charge premiums that amounted to the full value of the home every 20/30 yrs just to break even on a house that is susceptible to high wind and storm surge damage.

quote:

---

There’s nowhere else for these people to get coverage, and the premium charged currently doesn’t cover the amount of risk.

---

This is what people don’t understand about Citizens. They read “insurance company” and automatically think it’s some greedy insurance trying to make more money.

They don’t realize that if Citizens doesn’t raise the rate of their policy holders then it will be all the other people in the state (who don’t have Citizens) paying more to make up the difference through an assessment.

Citizens can not fail per state statute. That means someone is paying for the losses and that someone is either the policy holder or everyone else in the state.

What can they do? Premiums not enough to offset losses

quote:

---

I still don't understand why my tax dollars help subsidize flood insurance for someone who builds a house by the water in a hurricane zone.

---

You're gonna love Risk Rating 2.0

The OT's favorite state just got hit with a lawsuit that may be of interest to some here.

LA Times

quote:

---

A class-action lawsuit against the California FAIR Plan Assn. accuses the state’s insurance program of last resort of unlawfully selling policies with subpar coverage for fire and smoke damage.

---

quote:

---

Funded by a pool of private insurers who write policies in the state, the FAIR Plan serves as backup insurance for people unable to obtain coverage from private sources, especially those in high-risk areas where companies are reluctant to provide coverage.

---

quote:

---

Over the last few years, the state insurer has seen a wave of new policyholders amid extreme and destructive wildfires that have caused insurance companies to leave the state or to stop renewing policies.

As of March, the FAIR Plan was exposed to $340 billion in liabilities because of the high number of policies it had issued.

But since 2017, the lawsuit claims, the FAIR Plan began limiting coverage after state officials approved a standard policy that, among other provisions, paid for smoke damage only if it was detectable to the unaided eye or nose of an average person rather than requiring laboratory testing.Funded by a pool of private insurers who write policies in the state, the FAIR Plan serves as backup insurance for people unable to obtain coverage from private sources, especially those in high-risk areas where companies are reluctant to provide coverage.

---

May be worth watching. The insurance market is an absolute mess right now.