Florida Citizens Insurance state expansion

Number of Opinions of the company Citizens Property Insurance Corporation policies have increased as bank carriers or issuers force homeowners to obtain protection with “last resort insurance.”

Like about July 2022The number of citizen policies stood at 937, 835, which is double that of 2020. With the growth of 6, 000+ policies per week, Citizens will have more than a million by the end of the year.

Insurers blame increased fraud, more lawsuits, and inadequate payouts. Recent events confirm this contention. To date, ten property and casualty companies have been liquidated, four of which are in bankruptcy. Pictures of Coral Gables– fixed Weston Insurance they are new. The remaining ones are strengthening their recruitment processes and increasing wages, sometimes up to 30-50 percent.

WHAT HAPPENED Despite being spared the past few years from natural disasters, Floridasurrounded by water, it remains a high-risk area for hurricanes, water intrusion and the recent catastrophic collapse of a condo on the beach.

Historically, the Government forced carriers to accept lower premiums even if they had documented risks. However, in the past few years, what has hurt carriers the most are consumer-oriented laws that have led to many lawsuits and lawsuits. Important rules that are said to bring undue risk to carriers: the need to provide replacement of the entire roof if there is damage to 25 percent of the roof and the possibility of attorneys having a fee paid by the carrier if the claim is paid.

The well-conceived law had the unintended consequence of encouraging roofing contractors to aggressively seek business and lawyers to take legal action. As a result, Florida it has been zero for most insurance cases in the country. According to Insurance Information Institute, Florida It represents 9 percent of all insurance claims in the country, but accounts for 79 percent of homeowner’s insurance claims filed.

Ironically, higher premiums have also led to new Citizens policies. One of the requirements for a person to be eligible for citizenship law is to show that the salary comes from a Florida approved is more than 20 percent more than the amount paid to citizens. With the remaining special carriers increasing the payment up to 30-50 percent, as mentioned above, the limit of 20 percent cannot be overcome.

In May this year, a Florida parliament passed new laws aimed at reducing ceiling claims and lawsuits. While it’s a good move, many argue that it will take years for the law to show results.

CRIMINAL REPAIR, DISASTER PREVENTION Among the many publications on citizenship development, there is little mention of the problems that can affect both citizens and non-citizens.

What happens when a storm hits and citizens are shortchanged due to the number of complaints being filed?

THE GOVERNMENT HAS THREE WAYS THEY CAN USE TO REPAIR THE FAILURE OF THE HEART.

1. Citizen policy holders can be assessed only once up to 45 percent of their income; 2. If the assessment of the First Stage is not sufficient, the Government may assess at the same time all those who have market products, including, but not limited to, the owners of houses, vehicles, special skills and lines remaining up to 2 percent of the value. ; 3. If it appears to be insufficient, the Government may assess all citizens and all policyholders of the private market up to 30 percent of the amount provided annually until the deficiency is eliminated.

The management problem management It is the most dangerous months of The storm and our concern for Citizens’ risk is growing, let’s hope we don’t have to find out.

Doug Sawyer, a native Miamian, has a long career as an executive in several prominent financial institutions covering the areas of sales, marketing and financial management. He has earned many certifications in finance and insurance, the most recent of which is General Agent. Now they agree with it Century Risk Advisorsa South Florida an established company that offers a wide range of insurance and risk management solutions.