Subsidizing Citizens?

[30ashopper]

I just received my Allstate Homeowners Insurance bill and noticed a couple of small fees tacked onto my premium - a "07/07 Citizens Property Insurance Emergency Assessment", and an "06/08 Florida Insurance Guaranty Association Regular Assessment". Does anyone know what these are, the internets are not turning much up. I get the feeling I'm subsidizing Citizens even though I'm not using that provider.

 

[SHELLY]

I just received my Allstate Homeowners Insurance bill and noticed a couple of small fees tacked onto my premium - a "07/07 Citizens Property Insurance Emergency Assessment", and an "06/08 Florida Insurance Guaranty Association Regular Assessment". Does anyone know what these are, the internets are not turning much up. I get the feeling I'm subsidizing Citizens even though I'm not using that provider.

(Excerpt from an article)

Effective January 14, 2008 for most insurance companies, a third Florida Insurance Guarantee Association (FIGA) assessment will apply to new business, endorsement, and renewal premiums.This surcharge, 1.5% of written premiums, will be charged until the insurance company has recouped the assessment already paid to FIGA.

There are now a whopping total of six assessments that are being charged to insureds. All insurance companies are subject to assessments, as required by state law. Any future significant storm activity will likely result in companies passing along additional assessments from Citizens Property Insurance Corporation, FIGA, and/or the Florida Hurricane Catastrophe Fund.

These are not “premiums” since insurance companies do not get this money, and agents do not get commission on it, but many consumers may not realize that this cost is not for their insurance, but actually constitutes a subsidy for others. As an example, the FIGA assessments are for claims ultimately not paid to Florida policyholders by liquidated insurance companies.

The six assessments that are being charged to home policies are:
1. Florida Insurance Guarantee Association (FIGA) 2006 Assessment.
2. Florida Insurance Guarantee Association 2006 Special Assessment.
3. Florida Insurance Guarantee Association 2007 Assessment.
4. Citizens Property Insurance Corporation 2005 High Risk Account Regular Assessment.
5. Citizens Property Insurance Corporation 2005 High Risk Account Emergency Assessment.
6. Florida Hurricane Catastrophe Fund Emergency Assessment.
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Add those to the Florida sunshine tax.

 

[30ashopper]

I hate government.

 

[SHELLY]

I hate government.

"Today, we have a message for the people of Florida: 'Help is on the way!' We have heard the calls for help from Floridians suffering from high insurance rates," said Crist. "With this legislation, the powerless have become the powerful, and the credit goes to the people of Florida for letting their voices be heard." (JANUARY 25, 2007)

 

[mikecat adjuster]

My parent's have insurance in Louisiana but had a large deductible which was something they could not buy down. They had a fair amount of damage, $10,000 or so, but their deductible was over the damage amount so they received no 'help'. But guess what? Many people did get help. People with no insurance at all. I visited parents of friends of mine who did not have insurance and who complained that FEMA (or you and I) did not award them enough money to make all the necessary repairs. I think they got around 5 or 6 thousand for their damages.

So let me see. If you pay premiums all year, every year and have $10,000 worth of damage you get zero. But if you make other choices in life and chose not to pay into the system, you get 5 to 6 thousand in assistance. Yeah, that sounds fair to me. I worry that our 'welfare state' is going to get bigger and bigger because our federal government elected might just want to buy more constituency.

Look at California, a state that should be doing so well but is in a load of trouble. They have a mentality of government as safety net and look where they are. I wonder if our country will look like that in 10 to 20 years.

 

[Matt J]

My parent's have insurance in Louisiana but had a large deductible which was something they could not buy down. They had a fair amount of damage, $10,000 or so, but their deductible was over the damage amount so they received no 'help'. But guess what? Many people did get help. People with no insurance at all. I visited parents of friends of mine who did not have insurance and who complained that FEMA (or you and I) did not award them enough money to make all the necessary repairs. I think they got around 5 or 6 thousand for their damages.

So let me see. If you pay premiums all year, every year and have $10,000 worth of damage you get zero. But if you make other choices in life and chose not to pay into the system, you get 5 to 6 thousand in assistance. Yeah, that sounds fair to me. I worry that our 'welfare state' is going to get bigger and bigger because our federal government elected might just want to buy more constituency.

Look at California, a state that should be doing so well but is in a load of trouble. They have a mentality of government as safety net and look where they are. I wonder if our country will look like that in 10 to 20 years.

The only problem is that without the money those people become a bigger burden on the state in the form of homeless people after the county condemns the home. Now the government also has to clean up the property and eventually try and sell it to the highest bidder to recoup it's loses. Those loses don't even take into account the homeless family.

You could always make homeowner's insurance like car insurance, but then people will scream bloody murder about over reaching government. Personally I feel that it should be required and in the event someone is totally destitute then they can receive help from the government. I'm not for a welfare state I just understand that some people do need help and have no where else to turn.

 

[SHELLY]

If you've got a mortgage, you must have home insurance. So if you want to rely on getting a handout from FEMA, you first have to pay off your mortgage.

.

 

[grant blackwell]

CITIZENS Assessments on your HO Policy

If you've got a mortgage, you must have home insurance. So if you want to rely on getting a handout from FEMA, you first have to pay off your mortgage.

.

Make no mistake about it, if you have homeowner insurance in Florida you are supporting Citizens whether they are your carrier or not. It is going to get worse not better. I am a Republican historically, but our current governor in his misguided ways is killing the insurance market day by day in Florida. The assessment for Citizens and the State Gurantee fund are only gong to get worse. IF WE, NO WHEN we have a major hurricane hit Florida the state cat fund that insurance companies have access to is not adequate. Charlie opened up the market and is letting insurance companeis with as little as $3,000,000 in assets do business, sell policies and collect premiums without regard t their ability to pay. He ran on the platform of cheaper insurance and is sticking to it, but the math does not work. STATE FARM has the highest rates in Florida, and is pulling out because they can not survive a major hurricane. Why can a small company that sells CHEAP insurance with $3,000,000 in capital investment survive one, they can't. That is why you see the assessments. You think they are high now, wait until the big one hits. These little local Florida companies will be gone and we'll be left holding the bill. NOT FEMA, this is a State issue. FEMA is only a flood related mandate.

Charlie is saving us money today but the price is way too high down the road.
Charilie can't wait to get out of Florida and go to Washington. He was hand picked by the Republican party to be a future golden boy and his plan has only been postponed by the OBAMA victory. He is going to leave us holding a big bag of grief after the next BIG STORM.

 

[Bobby J]

Actually, it will be big blue tarps.

 

[gmarc]

I'm amazed at all the small under capitalized companies in fla. many of them have been in fla only 1-3 years with cheap premiums darn well having no intention of paying out when a major hurricaine comes as they have a measly $10 mil in capital on 50k policyholders.they're paying out big salaries and bonuses and will shut down during the next big storm and stick it to the taxpayer to pay.