Fl Homeowners Insurance Rates

Insurance bill is dangerous to homeowners

Bill dangerous to homeowners

This week the Florida House of Representatives is poised to take up HB 245, which is scheduled to be considered Thursday on the House floor. This bill is intended to remove policyholders from Citizens Property Insurance Corp. and make unregulated surplus lines companies available as an alternative insurance company. This is a dangerous bill to consumers because it will take away many protections that Citizens policyholders currently enjoy.

The Florida Insurance Guaranty Association (FIGA) was created by the Florida Legislature to handle claims of insurance companies that have become insolvent. This bill could put policyholders into companies that are not members of the FIGA. Without the protections of the FIGA, if a company goes under, the homeowner will be left holding the bag for any outstanding claims.

Surplus lines companies do not need to meet the requirements of the specific documents and forms that regulated companies must meet. This means there could potentially be very bad provisions in policies of which the consumer may not even be aware.

Perhaps most importantly, insurance premiums of surplus line companies are not regulated by the Office of Insurance Regulation. To put it simply, surplus lines companies can raise premiums at will. The state has no ability to stop surplus lines companies from raising rates at any time and by any amount.

I strongly encourage every policyholder who is covered by Citizens, and who does not want to be pushed into a surplus lines company, to contact your House member immediately and tell him or her to vote against HB 245. It is imperative that you act quickly before this bill is passed by the Florida House.

Sen. Mike Fasano, New Port Richey

Sewage plant will harm community

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Florida Homeowner's Insurance: pros/cons of citizens vs. private ...

I’m about to buy a house and getting Homeowner’s insurance quotes. Someone mentioned that one of the biggest cons of citizens insurance is that if there’s a big hurricane (quite common in FL), they will charge some kind of additional charge… is it better to go with a private provider (like ASI or Federated Nat’l Insurance Co)?

Chosen Answer:

Citizens is the state run program.

Yes, if there’s a big hurricane, they will raise their rates – and as their funding is subsidized by PROPERTY TAXES in the state, EVERY property owner will pay more, to subsidize those claims. Even those who don’t have Citizens for their insurance.

If you can find a company rated by AM Best A- or better, like ASI, WILLING to write your policy in Florida, I would go with them. That’s because they’re financially stable, and able to pay your claims in a timely manner. Last big hurricane that blew through, Citizens took up to 9 months finding the money to pay the claims. BUT, they have the taxation power of the state to back them up, so they will pay – sooner or later.

There’s a handful of little startup companies like Federated National, who are NOT rated by AM Best. When I’ve looked at their financials, seems like they have enough money to pay for 450 houses that are total losses – which could leave you, the homeowner, holding the bag, the next time a major hurricane blows through.

Hope that helps.

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