A few weeks ago, more than half of Florida’s private homeowners insurance providers had to be downgraded by the financial analysis firm that rates them.
TAMPA, Fla. — We told you a few weeks ago how more than half of the state’s private homeowners insurance providers have had to be downgraded by the financial analysis firm that rates them.
This has led many to seek out civil property insurance, government run and regulated insurance, which usually serves as a last resort.
Now Citizen Insurance has over 1 million policies and counting.
“The property insurance market in Florida is at risk,” said Mark Friedlander of the Insurance Information Institute. “The crisis we are facing is growing.”
Civilian property insurance, administered and regulated by the government, is considered a “last resort”.
However, as private insurers’ ratings have been dropped or downgraded, a Citizens 10 representative told Tampa Bay that they have added 241,000 new policies since the beginning of this year.
Friedlander says it’s not good.
“Not only have citizens become the largest home insurer in the state of Florida, but they account for 53% more than the next largest insurer,” he said.
With all of these policies, if we are hit by a major storm, this state-run insurer may have to pay very of claims.
Mike Peltier, a representative for Citizens, says the insurer has the money to handle 1-in-100-year hurricanes along the coast and 1-in-64-year hurricanes inland. But if costs exceed that, paying those claims could end up in anyone’s pocket.
“In the event that citizens exhaust their ability to pay, we must first impose an assessment on our policyholders and then other insurance customers in Florida, or if you want to call it a hurricane tax. are,” he said.