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…
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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…
Read MoreFlorida Property Insurance Reform Underway
In Tallahassee Florida, the fight for the insurance reform could mean an expensive cost of millions of dollars to the concerned customers during the legislative session. According to the private insurance industry, Citizens Property Insurance – a government run company, should raise its rates to its customers as well as reduce the coverage for them since they cannot possibly compete with these. The state lawmakers are now considering this and it could lead to a rapid increase of payments for the residents of Tallahassee. Similar changes have been noted, such as…
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