You’d think government leaders would choose their words very carefully when speaking to the only home insurance agency that is at the center of our insurance crisis and the collapse of the housing market. Name calling will not win friends or influence people, even making cheaper insurance options.
Last month, a The opinion of the company Demotech, Inc.and Ohio– An accounting firm has announced that it will drop 17 insurance companies it operates Florida. The move prompted a furious response from government leaders, including complaints from local mortgage lenders. Florida to property insurance agency only.
In his letter to Fannie Mae, Freddie Macand Federal Housing Finance Agency, Florida Chief Financial Officer Jimmy Patronuscaller The opinion of the company Demotech, Inc. “a rouge agency,” playing “the ruin and financial life of millions of Floridians.” This, from a guy who seems to have a knack for knocking President Biden and IRS more than finding a solution to the problem that threatens the public housing market and the economy.
Carping against Demotech may have bought the government time. The ratings agency put off its originally planned downgrade but a complaint with the government’s CFO cannot replace the overall policy of keeping property insurance affordable and affordable.
In 2019, Floridians paid $1,988, the average homeowner’s insurance policy. Today, it is $4,231according to Insurance Information Institute analysis. Property and casualty companies that still offer homeowners insurance continue to face the risk of liquidation. As a result, Opinions of the company Citizens Property Insurance Corp.Government-sponsored insurance of “last resort,” is becoming the only viable option.
“When the market is healthy, Citizens will be less because private companies will take advantage of good markets,” he said. Michael Peltiera Citizens spokesperson told a Post reporter Hannah Morse. “When the market is in difficult times, we grow.”
As the state faces the precipice of another hurricane season, the stakes could not be higher. Homeowners who rely on federally subsidized loans need high-quality insurance policies to meet their needs Fannie Mae and Freddie Mac insurance requirements. Low ratings often force policyholders to pay more for new subsidies, especially for homeowners whose homes are financed with subsidized mortgages.
Indeed, Gov. DeSantis called a special meeting of Florida Legislature to deal with this problem. The result was more money set aside to bail out struggling insurers, which was boosted this month. Florida Office of Insurance Regulation announced plans to establish a temporary reinsurance system through Opinions of the company Citizens Property Insurance Corp.strengthen insurance coverage for hurricanes.
The plan is subject to an “exemption” that allows struggling insurers to get insurance, money that would allow them to provide coverage and meet federal mortgage requirements. Unfortunately, this discount won’t help much if Demotech is forced to download or load a lot of pages Florida together.
Worse, the government’s efforts to tackle the problem have not stopped the insurance industry, which still sees climate change and ongoing lawsuits as contributing factors. Florida dangerous place to do business. A special division that creates bills that favor insurance companies over consumers has been met with “meh” by the industry.
It’s not like the government didn’t see this coming. Major insurance companies that offer large amounts of home and auto insurance in other countries have been left out. Florida years ago, leaving home owners here and small companies who may be willing to take the risk but need more help to get insurance from the government Florida to do so.
“I think the only way to deal with property insurance is national disaster insurance similar to what the state did with the flood,” State Sen. Lori BermanD-Delray Beach told the Post Editorial Board. “I hope the reinsurance Band-Aid is working but I’m not sure.”
Whether the solution is market-driven or government-driven remains to be seen. But so far the only plan seems to be that I hope we don’t fall into the storm.
If government leaders, like Patronis, are interested in dealing with property insurance, they better take the initiative to encourage companies and relevant government agencies. It is clear that simply reacting to situations does not work. Complaining about the last organization with a reputation won’t help either.