An American survey of homeowners across the country which was completed in October 2011 showed that 58 percent of respondents feel that the largest threat to homeownership is the housing market value. This figure was larger than the combined risk perceived about the impact of hurricane (8 percent), tornado (9 percent) and fire (15 percent). When asked whether they felt that homeownership is now the American Dream or the American Nightmare, a shocking 48 percent felt that it was a Nightmare, while only 52 percent clung to the belief that…
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Florida Governor calls for residents to share insight on Citizens Insurance Group
Florida Governor Rick Scott is looking for input from consumers on what to do with the state-run insurance company Citizens Property Insurance Corp. The company has come upon difficult financial times in recent years, much of which has been at the hands of fraud and natural disasters. The company was recently approved to raise rates on sinkhole coverage for homes as a way to offset the losses seen in years past. The new rates have spurred public outcry, which has led regulators to stagger the rate increase over the course…
Read MoreFlorida catastrophe fund faces major financial deficit
Florida’s hurricane fund is facing a major financial shortfall, according to Jack Nicholson, chief operating officer of the fund. The fund, which was established in the wake of 1992’s Hurricane Andrew, provides money to insurance companies in order to help those displaced by natural disasters. Nicholson issued a warning to state legislators this week that noted that the fund faces a $3.2 billion deficit and will not be able to offer aid in the event of a major storm for the immediate future. This year, the fund has provided insurers…
Read MoreReport calls for more action from consumers to help mitigate the costs of natural disasters
This year has been host to a large number of natural disasters that have born a heavy price tag to the insurance industry. While natural disasters may not be happening more frequently, they are certainly happening in areas of dense population, making the damage they cause astronomical. Consumers often look to the insurance industry to provide protections against natural disasters, but the industry can only do so much. A new report from the University of Pennsylvania’s Wharton School suggests that government policy, as well as consumer initiative, may significantly reduce…
Read MoreFlorida’s Citizens Insurance will limit rate increase over the next several years
Earlier this year, Florida’s largest home insurance company, Citizens Property Insurance Corp., proposed the largest rate increase in the state’s history. The company sought to increase the average rates of insurance policies for homes and business by 400% throughout the state, along with a proposed 2,000% increase for certain, risk-prone counties. The proposal was opposed by several consumer advocacy groups, but that opposition proved futile as state insurance regulators approved the proposal. Since the approval, lawmakers have been struggling to find a balance between enacting the rate increase and granting…
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