All posts filed under
Citizens Property Insurance
There is good luck and dumb luck—and both don’t seem to last. Calls to shrink Florida’s state-run property insurance mechanisms—Citizens Property Insurance and the Florida Hurricane Catastrophe Fund—are coming from smart, practical people who know that luck runs out, and that reality is getting attention.
Within two weeks’ time, two town hall meetings were held in Tampa related to insurance. One got a lot of attention from the media and the public, while the other not so much. In mid-September, at least 250 people came to voice concern over proposed sinkhole rate increases for Citizens Property Insurance. Last week, a town hall meeting was held to hear the public voice on rising auto insurance rates, and about 75 people showed up. Considering that both sinkhole AND auto insurance rates are rising by nearly the same amounts in parts of Florida, this difference in attendance is curious.
Come on. Did you really think Citizens Property Insurance would get approval to raise statewide sinkhole rates an average of 447 percent? I’ll bet they didn’t think so either. So why would our state-run insurance company ask for such an increase, you may ask. Because that is what their data showed. Insurance rates = insurance costs. Citizens’ documents from its rate hearing show it paid nearly eight times more in claims than it collected in premium. It also showed that sinkhole claims this year are twice what they were last year. How are they (we) going to pay those rising costs? A little bit at a time is the answer in the hope that it will all go away.
Is Citizens Property Insurance Corp. your favorite charity? I’m donating (involuntarily) a little over $100 this year to cover the cost of claims paid out to Citizens’ customers, plus the claims of people who were insured by companies that went bankrupt. So are you, though the percentage of your contribution may vary. Many people don’t mind kicking in to help people on fixed or low incomes get their insurance claims paid. I really don’t.
Albert Einstein said the hardest thing in the world to understand is the income tax. If it was hard for him, imagine the challenge for someone of average intellect. Al didn’t live in Florida, but I wonder if he’d be stumped by polarizing views on property insurance.