Citizens Property Insurance woes

[Smiling JOe]

This is just in the thinking, talking stage, but we are considering not renewing our policy. The lot is worth more than we paid for the house and lot. Anyone else considering that option? We are waiting to see the increase and coverage. We are not gulf front and it seems as tho you would have to be totally blown away before you could collect anything. We don't know, guess we will decide when it comes time to write the check.

I know a contractor, living on Holiday Isle, who stopped carrying insurance on his home last year for the same reason. I guess it helps, knowing that he can rebuild at cost.

 

[Dabell]

State farm does insure in NY. ( by the bay )
My Basement got flooded ( never had water in it for 8 years ) last week. It was rainning for 8 days straight! I had to rip up the rugs. I didn't call my insurance company because The damage is under 5k. I pay right now 990 a year. I feel that is low and I want it to stay like that.

Now My place down there Just went up 70.00 a month for home owner's Insurance... it's crazy!

 

[Paula]

I thought Citizen's was backed by the government, so they couldn't default on insurance claims if the claims are valid. Any thoughts on this? Isn't the flood insurance a government backed insurance as well?

State Farm has been great with us in Michigan and we just switched to their auto insurance as well. They covered us with no hassles when we flooded our house once when we left the toilet running upstairs (it was stupid). And they covered some of our roof when we had ice dams that damaged the inside of our house one winter. They were great with us both times.

 

[Wastin Away]

This is just in the thinking, talking stage, but we are considering not renewing our policy. The lot is worth more than we paid for the house and lot. Anyone else considering that option? We are waiting to see the increase and coverage. We are not gulf front and it seems as tho you would have to be totally blown away before you could collect anything. We don't know, guess we will decide when it comes time to write the check.

We just received notice that we are being cancelled. We have never had a claim in all of this and it just doesn't seem right that they can do this without a justificable reason. My husband and I have sat down and wondered the same thing, would it be more logical to just carry the bare minimum that is needed for our mortgage company. We have seriously thought about not carrying wind insurance and taking our chances because according to the county tax commissioner it's not the home that has increased 300% it's the land.

 

[Coast is Clear]

I was told the same thing about Citizens being the only option on wind insurance, so we have everything else with another carrier and wind w/ Citizens. They also said that since Citizens is the only option, they will raise rates whenever they want, add surcharges, etc. You have got no place to go!!

All that said did not think the insurance was outrageously priced so for me it is still worth it. Now I might not say that in 1-2 years from now.

 

[Wastin Away]

I was told the same thing about Citizens being the only option on wind insurance, so we have everything else with another carrier and wind w/ Citizens. They also said that since Citizens is the only option, they will raise rates whenever they want, add surcharges, etc. You have got no place to go!!

All that said did not think the insurance was outrageously priced so for me it is still worth it. Now I might not say that in 1-2 years from now.

Would this not be considered a form of price gauging?

 

[ShallowsNole]

You are correct. State Farm, (Allstate and Nationwide, too - I think) will not insure property located within 2000 feet from the Gulf nor within 500 ft from the Bay. Today, I heard two people who said they have been dropped from their Inusrance company. I am not sure which company they were using.

We are with Allstate Floridian, on the Bay. Our HO policy covers windstorm but has non-optional hurricane deductibles. When we lived in Freeport, we could choose a higher premium and have regular deductibles for hurricane damage. Not now.

Just got our renewal declarations, and they will keep us for another year. Premium nearly doubled :roll: . Interestingly, our flood insurance stayed the same.

 

[TooFarTampa]

Would this not be considered a form of price gauging?

Citizens is a mess, and is an example of a screwed-up gov't agency for sure, but I don't think the gauging is avoidable. Florida law requires that Citizens charge the highest rates in the market, thereby guaranteeing that you will find other insurance if you can. In fact, if new companies ever start writing new wind policies, Citizens will happily pass you over to then. But there is no indication that is going to happen anytime soon.

Also, because of last year's storms, Citizens ran a deficit of over $500 million. They have to make that up and balance the budget. So the rates have gone up dramatically and will continue to go up until things equalize. The only way to change this situation is if the insurance commissioner can come up with a way to lure new companies into the state (ha!), stop them from leaving (probably wouldn't hold up in court) or perhaps come up with a catastrophic fund that would cover hurricane losses for everyone in the state. It's all being discussed now.

 

[Rita]

We bought in Oct. 2003 and checked with State Farm because we have everything else with them - no go. And were told Allstate was the one policies were being passed through to Citizens, so we went through an Allstate Agent but are insured with Citizens. We're between a quarter to half mile from gulf though, so less likely to get dropped. Rates went up 38% overall.

We also thought of the option of dropping them if it got unreasonably high (whatever that is ), because our lot is worth more than we paid for home and lot.

 

[sarahj]

It is good to know that we are not the only owners considering no insurance. It is a different concept and something we would not have considered 3 years ago.