Citizens Property Insurance woes

Discussion in 'Real Estate' started by redfisher, Oct 20, 2005.

  1. redfisher

    redfisher Beach Fanatic

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    has anyone read the headlines on Citizens Property ins. woes...had them for years...does anyone insure w/them...any experiences w/them...are there other alternatives, etc...Red
     
  2. Smiling JOe

    Smiling JOe SoWal Expert

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    Nope, but my State Farm bill just came and again, it has increased. This time it went up only 48%. :bang:
     
  3. redfisher

    redfisher Beach Fanatic

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    SJ, does state farm do your wind, flood and hurricane...the problem w/citizens seems to be not only crooked execs but an unwillingness to pay from all of 2004...Red
     
  4. Rita

    Rita margarita brocolia

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  5. Beachlover2

    Beachlover2 Beach Fanatic

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    Red - From what I have been told - Citizens is the insurance of last resort - If no other company will take you Citizens has too. If they can find someone else to cover you - you get moved on to another company. After our Ivan claim (not very large) we got moved to Citizens - about 5 mos later I was given notice that I had been moved to another company. We had about 9000.00 worth of damage from Ivan and if I had to do it over again I think I wouldn't have filed a claim.
     
  6. Paula

    Paula Beach Fanatic

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    I don't think State Farm will insure people who live close to the water (we are about 200 yards and I think they said they don't insure people that close to the water). We have State Farm in Michigan and think they are very good and have responded to our claims quickly when needed. We have citizen's for wind insurance but I thought they were the only company to offer wind insurance and that they are backed by the government. What other companies provide wind/hurricane insurance? Thanks, this is a good year to revisit insurance policies, isn't it?!?!?
     
  7. wetwilly

    wetwilly Beach Fanatic

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    Yes our broker in Seagrove told us the same thing that Citizens is the only one that does wind now in Fla since all of the others went belly up since last few Hurricane seasons. So, unless that was bunk, we are stuck with Citizens until they all go to jail and then what? :bang: :bang: :bang:
     
  8. Beach Runner

    Beach Runner beats on hood

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    Right. State Farm won't insure people like me who are close to the water. I know people (one of which is related to me) who have paid a boatload of money for beach-view property but haven't started building because :puke: they know they won't be able to get insurance.
     
  9. Smiling JOe

    Smiling JOe SoWal Expert

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    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.
     
  10. sarahj

    sarahj Beach Lover

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    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.
     
  11. Smiling JOe

    Smiling JOe SoWal Expert

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    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.
     
  12. Dabell

    Dabell Beach Fanatic

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    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!
     
  13. Paula

    Paula Beach Fanatic

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    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.
     
  14. Wastin Away

    Wastin Away Beach Lover

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    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.
     
  15. Coast is Clear

    Coast is Clear Beach Lover

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    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!! :sosad:

    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.
     
  16. Wastin Away

    Wastin Away Beach Lover

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    Would this not be considered a form of price gauging?
     
  17. ShallowsNole

    ShallowsNole Beach Fanatic

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    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.
     
  18. TooFarTampa

    TooFarTampa SoWal Insider

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    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.
     
  19. Rita

    Rita margarita brocolia

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    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 :idontno: ), because our lot is worth more than we paid for home and lot.
     
  20. sarahj

    sarahj Beach Lover

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    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. :idontno:
     

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