Homeowners insurance depopulation continues for Citizens

Florida Homeowners Insurance

Florida-run insurer continues to let go of homeowners insurance policies Florida’s Citizens Property Insurance continues to face significant challenges. The state-run organization has been one of the best, if not the only, places to find affordable homeowners insurance coverage for many Florida residents, especially those living near the coast. Over the past few years, the insurer has been grappling with dubious financial issues that have threatened to make it insolvent. Ordered to address this issue aggressively, the insurer has been actively depopulating itself of policies. 31,000 policies to be taken…

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Citizens Property Insurance of Florida proposes rate increases averaging 428% for sinkhole policies

Sinkholes have been quite troublesome in Florida recently. Earlier in the year, the state was inundated with insurance claims regarding damages caused by sinkholes. The majority of these claims, however, were fraudulent, as regulators discovered little to no evidence of sinkholes when investigating properties claiming to have suffered damage. The overwhelming number of falsified claims coming from property owners has caused many insurers to limit the extent of their coverage or otherwise raise the premiums associated with sinkhole insurance. Citizens Property Insurance, the state-funded insurance program, too will be raising…

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Florida Insurance: Controversy over new property insurance bill

Florida Governor Rick Scott has been the subject of public scorn recently after pressuring the state’s lawmakers to form a bill that would significantly cut the number of policies that could be written by Citizens Property Insurance Corp. Scott has voiced his determination to reduce Citizens’ role in the state’s insurance industry for some time. He denies that his goal is the closure of the insurer, however. The Governor says that he recognizes the value of the insurer but insists that some changes need to be made to justify its…

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Florida sinkholes causing major damage to homes

 The sunshine state is having more problems with sinkholes. A Florida company called CDS Business Mapping is working with insurance agents and underwriter’s to provide risk reports based on geographic data and maps. The company has mapped areas in ten counties that are sinkhole hazards. Florida’s Insurance Commissioner stated that sinkhole claims are one of the top five cost drivers that are causing insurance companies huge financial losses. In three years, Citizen’s insurance has paid almost 250 million dollars in sinkhole claims; and has another 100 million reserved for “in…

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New rules in the pipeline for Florida property insurer

A controversial bill has been passed by Florida’s Senate Banking and Insurance committee. The bill could increase the premiums paid by customers of Citizens Property Insurance by 25% and will eliminate coverage for some homeowners over time for properties whose value exceeds $500,000. Strict requirements will also be imposed, preventing homeowners from being able to enter the insurance program unless their only alternatives are 25% more expensive than coverage offered by Citizens. Representative Alan Hays of Umatilla, one of the bill’s sponsors, claims that raising premiums is the very last…

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