As Florida continues to struggle with controversial rate increases from the state-backed Citizens Property Insurance, Governor Rick Scott has appointed two insurance professionals to serve as board members for the company. These two former insurance industry executives will serve as a catalyst for change in the company. Governor Scott has said that he wants to reduce the coverage of Citizens, enabling competition with private insurance companies. Now that Citizens board of directors is populated with members with extensive histories in the industry, Scott’s goal may now be attainable. Citizens new…
Read MoreTag: raise rates on sinkhole policy
Citizens Property Insurance rate increase struck down by Florida’s Insurance Commissioner
Florida’s Insurance Commissioner has taken a bold stand against the state-run insurance company Citizens Property Insurance Corp. The insurer has been facing staunch opposition lately for a rate increase that will raise the rates of sinkhole coverage throughout the state by an average of 400%. Commissioner Kevin McCarty has ruled against the rate increase and now demands that the insurer make dramatic changes to their rate proposal. McCarty is keen to see the insurer propose new rates that are friendlier toward consumers. The insurer’s rate increase has been under investigation…
Read MoreFlorida Insurance Commissioner promises balance in Citizens rate increases
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…
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…
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