Because of Citizens' Loss, All Property Owners Facing Increase

[steve2470]

http://ap.tbo.com/ap/breaking/MGBQ3QUVHCE.html

Watch out my fellow Floridians !

ORLANDO, Fla. (AP) - Florida homeowners will pay an average 7 percent surcharge on their property insurance as the state's insurer of last resort moved Wednesday to recover its losses from last year's hurricanes by charging private insurers $516 million.

Citizens Property Insurance, created by the state in 2002 for homeowners who couldn't find insurers to underwrite high-risk properties, is imposing the one-time charge through its legal authority to spread out its losses across all companies. Private insurers, in turn, are allowed to directly pass that charge on to consumers, meaning someone with a $5,000 insurance bill will have to pay an extra $340.

Citizens board chairman Bruce Douglas said that insurer had no choice because under state law it must impose the surcharge to recoup its losses.

Citizens, with 740,000 customers, is the state's second-largest insurer behind State Farm, but legally must charge the highest rates so it doesn't with private companies. Besides spreading out losses by billing insurance companies, the quasi-government entity is able to issue bonds to raise money.

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[short bus president]

1. wha?

"created by the state in 2002 for homeowners who couldn't find insurers to underwrite high-risk properties" - what business does the state have making it possible for people to construct EXPECTED hurricane fodder? How is something like that even possible? What is the state's interest in having repeat disaster areas be repeat REALLY COSTLY disaster areas?

[HadItUpToHere]

3. is that "angry arnie" in your avatar?

wallace shawn rules.

[Southpaw Bookworm]

4. One answer

To your first question: Earning political contributions from their rich cronies who build in shore areas?

[raccoon]

6. I agree with you, it doesn't make any sense.

Isn't this what federal flood insurance does?

[ixion]

2. of course, you realize what generally constitutes 'high risk' property in

Florida, no?


Coastal Properties, a.k.a. those multi million dollar mansions you will see but probably never have a shot at owning.

That's who this covered for the most part, I'll bet. :grr:

[raccoon]

8. John Stossel did an episode one time

about flood insurance. He had owned a beachfront house (a big one, needless to say). A storm wiped it out and the insurance reimbursed him.

[HadItUpToHere]

5. It couldn't happen to a nicer state, IMHO.

florida gets what florida deserves.

[FlaGranny]

7. With everyone's anger toward

the rich folks building mansions on the ocean, you all seem to be forgetting us retired folks who can only afford to live in mobile homes. We are the ones facing this crisis - not those rich folks on the ocean. Their homes didn't sustain much damage last year. I have my home insured for $25,000 at a yearly rate of $1200 through the state's insurance. It was either $1200 a year or take the chance of losing everything. There are hundreds of thousands of others in the same boat. Many are now uninsured. I have no idea how long I'll be able to keep paying that much money for so little coverage.