It took an outcry from homeowners, but the Florida Legislature bucked its traditionally conservative, pro-business convictions and greatly expanded the state’s role in the homeowners insurance market.
With votes of 40-0 in the Senate and 116-2 in the House, lawmakers passed a 167-page bill that is expected to provide a break on runaway insurance rates.
This not only hits Citizens’ customers, but the rest of us too. I have another insurance carrier and noticed on my latest homeowner renewal policy that there was a $50+ Citizens’ fee in addition to my own increased across the board charges. I have not had a chance to call about this yet as I just received in the mail yesterday, but it looks as though we are all victims of Citizens’. Has anyone else had this happen or noticed it on their policies?
I just got a call from my insurance co telling me, you guessed it, you are being cancelled. Well we will see about that. I propose that we get together, I will draw up the paperwork, to self insure. I feel that if we all pitch in our $2000 or so $$$ into a pool for catastrophe only we could self insure. No little claim for this or that, just the big stuff. Put the money is some interest bearing CD for 3 or so months and rotate them so the money is available when it is needed. Just fire damage and major wind. I am contacting my attorney to see what steps need to be taken. Sort of a group partnership, every one is a partner and everyone has a say. I have 4 or so already interested.
Can you imagine if the average worker went into his/her boss and said they would like a 56% increase in their pay. Their boss would laugh them right out of the office and after he/she recovered from laughing so hard, they would call the nearest mental hospital and have the employee carted off for evaluation. So how does Citizen’s rate getting a 56% increase when the average working class individual receives maybe a maximum 4% increase. Who is going to cover the 52% difference between my raise and the new insurance increase? I am at the point now that I really don’t care what the state of Florida does or allows - all of them are a bunch of thieves. Besides I have made the decision to get the heck out of here before the bottom really drops out. I cannot afford to stay here and pay these outrageous prices when my raise never goes above 4%. Where I am planning to move, immediately I am going to save $7000 a year right off the bat for the difference in my car insurance, homeowner’s insurance, and property taxes. That is a very big chunk of change. I think the House and the other politicians in Florida have let this situation get totally out of control. But if they are getting kickbacks from it, then I can see them turning a blind eye. This issue should have been addressed a year or so ago. What is the House going to do solve this problem? Raise the sales tax more to cover this just like they are talking about with the property tax. I think the State of Florida wants to push the working class people out of here and make it for the rich and famous. Well duh - Florida you will still need us peons to work at your stores, banks, restaurants, etc.
I work for an insurance agency and this insurance crisis is killing us. We get people calling us upset all the time. Unfortunately, I don’t have any good news to tell them. The Florida Department of Inusrance is running people out of Florida. People used to come here to retire, now they can’t afford it because of the insurance. I have had several people who have had to sell their house, not purchase a house they wanted, or simply cancel their insurance because they could not afford it. They need to have the insurance company prove to everyone what they have taken in for premiums and what has been paid out in claims. I was under the impression that Citizens still has lots of money in their reserve. If that is the case, why are the rates still increasing. The people who don’t put in claims should not be penalized as those who put in claims for everything. The legislatures who are allowing these increases must not have to pay for their own homeowners insurance.
I work for an insurance agency and this insurance crisis is killing us. We get people calling us upset all the time. Unfortunately, I don’t have any good news to tell them. The Florida Department of Inusrance is running people out of Florida. People used to come here to retire, now they can’t afford it because of the insurance. I have had several people who have had to sell their house, not purchase a house they wanted, or simply cancel their insurance because they could not afford it. They need to have the insurance company prove to everyone what they have taken in for premiums and what has been paid out in claims. I was under the impression that Citizens still has lots of money in their reserve. If that is the case, why are the rates still increasing. The people who don’t put in claims should not be penalized as those who put in claims for everything. The legislatures who are allowing these increases must not have to pay for their own homeowners insurance.
Now that we have found out that the proposed rate hike is postponed is it possible that legislators have finally begun to listen to the voters and are afraid of loosing thier jobs?
Where’s Walmart when you need them?? Usually, right around the corner.. I’m sure they’re working on a new insurance company to take on Florida’s insurance problems. I say this because they’ve already bailed out the medication problems that face the country. I wait for the day that we can go to Walmart and get our Homeowners policies too. I know that Walmart can do it because Walmart won’t opperate like insurance companies of today.
I do feel for the insurance companies though.. They’ve had a rough year with the earthquakes and all.. Insurance companies are like cable companies and airline companies on steriods. They kill their customers with with same old garbage until someone comes along with better service for a cheaper price and mops up the market.
Walmart if you’re reading this message board, then I ask you to kick around the idea (if you’re not already). Not all of us are Walmart hater Liberals!!! And I bet a few libs will start shopping at Walmart for their insurance too.
I feel that if we all pitch in our $2000 or so $$$ into a pool for catastrophe only we could self insure.
Unfortunately I think that insurance cooperatives are prohibited by law here in Florida. Another way that the legislators have protected the interests of the insurance lobby.
Insurance companies will hide behind the “projecting for the future need” reasoning. The question would be: Where is all the money from the years of no major issues at all? One would think the entire State of Florida is leveled each year the way they all act. All insurance companies are sitting on cash through basic accounts, investments, etc.
For instance: a friend worked for a MAJOR insurance company when I was in the Midwest. Tornadoes had hit hard one year. They were singing the blues of going broke. They had 2.5 billion in their national portfolio.
Oil, insurance, big business and the government not doing much to slow it. The rich keep getting richer…
It is sad to see someone who has worked hard their whole life, now in retirement losing their home or faced with dropping insurance. Tallahassee simply sits and watches this happen. This should be on the front page (or at least page two) until it is corrected and people can afford to live here again.
I’m really relieved I sold my property in FL, but am sympathetic to current owners.
Insurance crisis will worsen in ‘07, and property prices will be driven down (further
than would ordinarily be the case in a garden variety correction) due to severity of
property insurance problem. Within a year or two, ins. rates will stabilize (at
some higher level) & everyone will then become familiar with the new “cost of
ownership” of owning in various parts of coastal FL (which will be MUCH higher for non-homestead
property- permanently - I believe).
MOst concerning aspect at this point, I believe, is that Citizen’s wants to drop coverage
for all non-homestead property (which I’d guess is 50% or more of property in FL coastal
regions) beginning 3/07. (Your agent will have to get declinination letters from 1 admitted
ins. co. + 3 surplus lines ins. cos. & provide affidavit that he/she did their best to get alternative coverage). Depending on how this is administered, non-homestead
owners could have their heads handed to them (so to speak).
However, interesting thing is that many, many people will still want to live in FL, so there will undoubtedly be strong demand for housing on a constant basis. It’s just a matter of how much newcomers are willing to pay once the dust settles…
In fact, there is currently very strong demand for FL housing...but these potential buyers are
saying (in effect) prices are too high, given the current risks and market changes…
The current problem with the housing sales will continue to be the average price for new builds as well as existing. Don’t see them falling too dramatically and the average person here can hardly afford a home, then they have to deal with the taxes and insurance which puts it out of reach. Larger more “business developed” areas will have a median income level to support it whereas Tampa does not. There is a significant disparity and no major changes appear to be in the horizon. No one is courting any large companies to move in that I have heard of. Many mom and pops are being put out of business for development of condos, etc. which no locals can afford (not to mention the tax increase and once again insurance that drives them down).
This will be a hard one to fix and I sure hope someone in Tallahassee is looking at the short and long term results of all of this but most importantly… the fix.
Once again, it’s a case of allowing the insurance companies to declare Florida as a separate insurance entity and not part of their national corporation. As a result, they can claim they are taking huge financial losses because of the Hurricanes of two and three years ago while the rest of their national corporate policies rake in huge sums of money. Interesting story in the LA Times recently that noted State Farm is reducing, yes reducing it’s premiums in the State Of California by 20% http://www.latimes.com/business/la-fi-statefarm4jan04,0,6807741.story even though that state has a high risk of earthquakes, floods, fires and mudslides. We are getting screwed blewed and tatooed in sunny Florida and the insurance companies are laughing all the way to the bank. My mortgage just went up $425 a month because of increases to my insurance and property taxes right here in Hillsborough.
Charlie, are you listening???? Doubling the homestead exemption does nothing to help. We need real solutions and a governor with cajones to stand up to the insurance industry and remove that separate Florida Corporation provision that they enjoy so much!!!
Just saw that they plan to remove the provision that requires Citizens Insurance to charge more than the private carriers ( if it gets through the lobbies in Tallahassee). Great, but what about all of us that are policyholders of the private companies- you know the ones that you let have carte blanche back in ‘93 after Hurricane Andrew?? Hopefully that is second on the agenda for things to do in the new Legislative session, closely followed by auditing the local governments’ spending habits to find out where the record windfall of property taxes has been spent the pat 3 years! I mean, I certainly haven’t seen a 200% improvement in roads, services and county support but my taxes have gone up that much!
I have sent letters to many (elected officials and press) regarding the taxes and accountability of spending. We as taxpayers should be able to see where the windfall in taxes has been spent or is intended to be spent. As I figured though, responses from officials are non-existent and I am not holding my breath waiting for a response.
To the point of insurance companies, the same would apply. I do suggest to shop around as the rates vary and better rates can be found…
