Insurance and property values

[j p nettles]

With regard to insurance fraud, I was referring to the property-casualty insurance industry and the effects of fraud in Florida. Scott was alleged to have defrauded Medicare and Medicaid if I'm not mistaken. I don't think that has a lot to do with the cost and availability of property insurance in Florida.

 

[meggiemom]

What happened to hurricane season? It seems to me that since we haven't had a major storm in a while, the state run insurance company should have billions and billions of dollars.

 

[Zebraspots]

Sinkhole claims are depleting the fund even though we haven't had hurricanes.

 

[j p nettles]

Sinkhole claims are depleting the fund even though we haven't had hurricanes.

Citizens was set up to cover windstorm claims and private insurers wrote regular homeowners policies with an exclusion for windstorm and hail. The brilliant bureaucrats who are running Citizens decided it would be dandy if the state run insurer started writing coverage for all perils which in Florida includes sinkholes or "catastrophic ground cover collapse". Citizens is the insurer of last resort. Of course the main problem is that any business run by any government agency is a disaster.

 

[sadie1]

Better pray some other insurers come in. I pay $1650 with citizens and got quoted $11k a yr with cbiz who is vrbo's main sponser.

 

[poppy]

No matter where you live in this country there are natural disaster threats, hurricane, tornado, landslide, ice storm, earthquake, fire, flood etc. Spread the risk with one pool of funds. Let everyone pay into a FEMA type program and let everyone be made whole.

 

[j p nettles]

Better pray some other insurers come in. I pay $1650 with citizens and got quoted $11k a yr with cbiz who is vrbo's main sponser.

Exactly the point of my original post. Governor Scott has stated he'd like to get rid of Citizens and the legislature has started the ball rolling. You can't force insurers to come into Florida and private sector insurance companies have already left the state in droves. My house was built in 2006, it's north of the bay and State Farm, Allstate, and other well known companies wouldn't touch it. My house isn't coastal property. If people can't get insurance on expensive properties along the coast, the prices won't stay high. Another bubble may be bursting sooner than we think. There's always surplus lines coverage but it's usually super expensive. It' ain't rocket science.

 

[Zebraspots]

I think reducing the number and price of properties covered by Citizens is a good idea. We need to stop subsidizing bad decisions.

 

[Annie66]

I think reducing the number and price of properties covered by Citizens is a good idea. We need to stop subsidizing bad decisions.

I also think it's a good idea not to subsidize bad decisions but if Citizens is the only company that will insure coastal property in Florida who's going to insure it?

 

[lazin&drinkin]

Pure, AIG (now Chartis) and Chubb all write beachfront in FL. Pure is by a bunch of ex-AIG execs.