Citizens' Hurricane surcharge plan wins approval-Fla.

[IChing]

It was required to refill reserves. Hurricane Katrina isn't part of this surcharge. Another deficit could mean another surcharge.

By JEFF HARRINGTON, Times Staff Writer
Published August 27, 2005
Florida Insurance Commissioner Kevin McCarty approved a plan Friday that puts property owners statewide on the hook to pay off a $515-million deficit at the state-run Citizens Property Insurance.

The board of Citizens, which covers properties that can't find property insurance in the open market, voted unanimously Aug. 17 to collect the one-time charge.

McCarty said he sympathized with homeowners socked by double-digit rate increases, but had no choice. Under state law, Citizens had to levy a surcharge after its reserves were exhausted by last year's four-hurricane season; McCarty's sole task was to make sure Citizens' deficit estimate was accurate.

The bottom line for property owners: about a 7 percent surcharge, or about $90 for someone paying $1,300 in premiums.>>>>.snip

Sacco said he's suspicious that many of those receiving the "subsidy" are wealthy coastal homeowners. In recent years, however, the ranks of Citizens have swelled by adding older homes and those in neighborhoods prone to sinkholes, many of them in Pasco County.

http://www.sptimes.com/2005/08/27/Business/Citizens__surcharge_p.shtml
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Look out, Louisiana,
and don't think that the rest of the US will help pay for this storm damage in their own homeowner insurance premiums

[1monster]

1. Great! I'm already paying $1560 a year for insurance on a modest house

that is not on a flood plain and I know that the insurance company will raise my rate again this year as they have every year since Andrew. (Fifteen years ago I was paying $23.00 per month with a $250 deductible. Today I'm paying $130.00 per month with a two percent of the damage deductible <state mandated change> on the same insurance plan.)

Now I'm going to have to pay an additional seven percent on that! No wonder I never have enough money to upgrade my home with hurricane proof windows and a steel roof..... :eyes:

[IChing]

3. We are having a rate increase here because of the arsonist to our condos

I think that your increases are awful,

Question: Would you get a reduction with the improvements?
it seems it would be in the interests of the insurance company to help with the
improvements.

[1monster]

6. Insurance companies don't care about you and me or anyone else, either.

Like most all other big corporate businesses today, they care only about how much money they can put in their directors' bank accounts.

If I do put in the hurricane proof windows and steel shutters, etc. I will get a small reduction on policy costs, BUT, those improvements will also increase the cost of rebuilding and, thus, my premium would go up some too. Catch 22.

(I'd rather have the improvements regardless of the premium. Just think, when a storm drew near enough to be a threat, all I'd have to do is roll down or slide out the steel shutters. No more digging out plywood and nailing or screwing it over the windos and glass doors. I'd love it. Of courese, there is a two year waiting period in Florida for those same steel shutters. Sigh.)

[dogday]

2. Why should it be any different than they did

for the victims of the Tsunami. There was a report that came out months ago that said the wealthy people were having their needs met before the poor ones.

[FloridaPat]

4. Why can't they charge the people that don't have insurance? And

what about the $12 billion FEMA money? Where did that go?

[1monster]

5. A whole bunch of that money went to funerals for people who died from

hurricane "related" problems. Even some who died before and weeks after the the storms. :eyes:

[Mairead]

7. You forget the basic principle of Capitalism: SOCIALISE risks

where they affect the wealthy, privatise them where they affect the rest of us.

(only joking--I know you didn't forget)