In the wake of one of the largest insurance rate increases to hit the state, Florida’s Citizens Property Insurance has been the subject of criticism from the public and state regulators. The state-run insurance company recently received approval to hike up the premiums for sinkhole coverage by an average of 429%. These rates have yet to take effect, a fact that Insurance Commissioner Kevin McCarty has been keen to express. The Commissioner has vowed to ensure that the steep rate hike is to be phased in slowly, hoping to ease…
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Massive rate increases from Florida’s insurance program approved
Early this week, Florida’s Citizens Property Insurance proposed massive rate increases for sinkhole coverage. On average, policies would be impacted by an increase of 428% throughout the state. The proposal was seen as excessive by many consumer advocacy groups, but the insurers that make up the state-run program argue that higher rates are needed to combat fraud. Despite the best efforts of opponents, the proposals were passed as part of Senate Bill 408. Now that the new rates have been approved, Florida residents can expect to pay a lot more…
Read MoreCitizens 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…
Read MoreFlorida fire insurance warning issued
When most people think of wildfires, there are many places that might come to mind but Florida usually isn’t one of them. Since the first of the year, Florida has had over 2,660 wildfires. Florida’s drought conditions coupled with low humidity and high winds have made ideal conditions for wildfires. The director with the Division of Forestry in Florida has issued several warnings and urged residents to follow county burn bans. Visitors to the states parks are also encouraged to check any burn bans that may be in affect before…
Read MoreNew limitations on Florida sinkhole insurance imposed
Florida Governor Rick Scott has signed off on a bill that will change the state’s property insurance regulations. The bill was proposed several months ago and has been the subject of controversy since its introduction. Opponents of the bill call its provisions “anti-consumer.” State officials, however, say that the bill is a necessary measure to combat fraud. The Governor approved the law only six days after it arrived on his desk, drawing the ire of a number of consumer advocacy groups who stood in opposition of it. The new law…
Read MoreToxic Chinese drywall battle continues
There has been a dispute raging in Florida regarding damage done to properties using toxic, Chinese-made drywall. Many insurance companies have denied payment for damaged properties that make use of the material, leaving many homeowners to shoulder the cost of rebuilding after any kind of disaster. The material has also been the cause for some health issues, adding yet another facet to the already murky context of insurance coverage. However, a Florida judge has recently issued a ruling that could change all that. In the wake of Hurricane Katrina, many…
Read MoreFlorida sinkhole damage is cause for change
Florida legislators have been struggling with property insurance reform for some time now. With insurers raising prices and the widespread accusations of fraud, specifically involving instances of sinkhole damage, the state has never been in such dire need of change, according to lawmakers. Fortunately, change is on the way as the Florida House of Representatives passed a bill that will address factors that are contributing to higher insurance costs as well as revitalize the state’s insurance market. The bill passed with an 85 to 33 vote. Lawmakers are representing the…
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