Citizens Insurance Attacked

By: Whitney Ray Email
By: Whitney Ray Email

After Hurricane Andrew rocked Homestead in 1992, destroying thousands of homes, many private insurance companies stopped writing insurance altogether, others in just in high risk areas.

The state responded with Citizens property insurance. Lawmakers then called it the insurer of last resort. Today some call it Socialism.

“It’s nothing more than Socialism and we need to stamp out Socialism in this country as soon as we can,” said Hays.

State Senator Alan Hays is sponsoring legislation that would force citizens to drop million dollar properties in 2012 and properties over half a million by 2016.

Hays says his legislation would return Citizens to its insurer of last resort status, but Governor Rick Scott may have other plans.

Over the weekend reports began to circulate of the governor’s plan to kill Citizens in four years. Senator Mike Fasano says ending Citizens would force some people out of their homes.

“Those who have mortgages, there would be a forced insurance policy put on them by their mortgage company and it would windup being a surplus lines company and those individuals, those home owners, those condo owners would wind up losing their homes because they wouldn’t be able to afford to keep it any longer,” said Fasano.

There are 1.3 million Citizens customers. If a major hurricane destroys a lot of Citizens homes, the state insurer could go belly up. And the burden to pay claims would fall on Florida policy holders in the form of assessments.

There’s an amendment to the Citizens bill that would rename the state insurer, Taxpayer Funded Property Insurance Corporation. The bill’s sponsor called the proposed name change truth in advertising.

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  • by Sandy Young Location: Hudson,fl. on Apr 26, 2011 at 08:35 PM
    Rick Scott is destroying our state. Now it,s the homeowners insurance. A lot of people in this state are on fixed incomes,no work,foreclosures,no health insurance and now he wants us to pay more for insurance. Thank god we have had citizens.. People will not be able to pay for an increase.
  • by Befuddled Location: Tally on Apr 26, 2011 at 02:00 PM
    Well, tell me this - if Scott wants Florida out of the insurance business by doing away with Citizens' Insurance, then why does he want to create a state self-insured health system. Either he's in the homeowner's insurance business or the health industry! Oh, big surprise! He's in the health industry, HCA, Columbia Hospital. Wouldn't surprise me in the least if he's in the homeowner's insurance business, too. Talk about a walking contradiction!This man has figured out a way to feather his nest while he's in office and if we don't watch out, he's going to own Florida before he's out of office. He has already said he's the CEO of Florida. He may have said that "tongue in cheek", but things said in jest often have a lot of truth in them. I can't believe that with all the damage he's already done, that people still support and defend him!
  • by Vicious_Fish on Apr 26, 2011 at 10:43 AM
    Move away from the coast if you can't afford a high premium. I'm tired of subsidizing someone's fantasy lifestyle.
  • by Franklin Thompson Location: Tallahassee on Apr 26, 2011 at 10:35 AM
    Citizens Property Insurance Corporation was not created until 10 years after hurricane Andrew. Its predecessor, created about a year after Andrew, was the Florida Residential Property and Casualty Joint Underwriters association and it was not a state owned insurance company.
    • reply
      by rick on Apr 26, 2011 at 06:29 PM in reply to Franklin Thompson
      FRPCJUA was consumed by the state and renamed Citizens. It doesn't matter how you slice it, Citizens is fundamentally a government run organization that operates with socialist concepts. The state is mandating by law that people who are fortunate enough to be able to get policies from private insurance companies are forced by law to pay an additional premium to subsidize Citizens and will also be forced by law to pay an additional premium if there is another hurricane.
  • by tom Location: madison on Apr 26, 2011 at 10:20 AM
    second that
  • by sally on Apr 26, 2011 at 09:25 AM
    Citizens Property Insurance doesn't only provide coverage for the wealthy. If you live in a mobile home in Florida, Citizens is the only one that will provide coverage for your home.
    • reply
      by truth on Apr 26, 2011 at 03:03 PM in reply to sally
      sally--i have lived in several mobile homes in florida, and have had farm bureau insurance since 1992 great insurance co. and agent your post is not true.citizens rates to low for the risk in areas a bad storm could break the company and then us tax payers bad deal.
  • by jswang Location: Tallahassee on Apr 26, 2011 at 08:16 AM
    Some of you don't even understand why Citizens is in existence. There are plenty people in Miami that don't stay on the beach who have Citizens insurance because no other insurance company would carry them because of hurricane coverage. Insurance companies are frauds anyhow. You pay them hundreds of dollars a month and as soon as you have soemthing happen they want to drop you. Citizens is high but it's all that some people in Florida can get.
    • reply
      by tom on Apr 26, 2011 at 10:17 AM in reply to jswang
      Why should I pay for your insurance? That is what you do not understand.
      • reply
        by andi on Apr 26, 2011 at 10:53 AM in reply to tom
        @tom I guess you do not realize your taxes pay for quite a bit of things, not just Citizens "insurance". Why should the taxes I pay go to serve and protect ALL people, not just me? Why do my taxes pay for other people's children to go to public school,when I don't have any. If you don't like it you have the "choice to move to a different state".
        • reply
          by tom on Apr 26, 2011 at 04:43 PM in reply to andi
          I agree 1000 percent. I don't want to pay for public education either..... private schools are better and cheaper. Government is not the answer
  • by P&C Agent Location: Tallahassee on Apr 26, 2011 at 08:08 AM
    Citizens was first established in 2002 for those that could not get insurance anywhere else. It is government established and is supposed to be a non-profit insurer. (A perfect example of why insurance should never be regulated by our government; FEMA) Due to the high hurricane and sinkhole activity in the state not many insurance companies feel warm and fuzzy about coming to Florida. Since Florida doesn’t have insurer’s knocking down the doors to come in and write business this “last resort” company has now became the “only resort” for most people. Even the people that can afford the coverage living in million dollar homes have to use this company because no one else wants them. Florida has to get creative for these insuring companies to want to come to Florida. However they are too busy trying to fund a program like this one to sit down and come up with a plan of action. They should take notes from New Orleans and Mississippi.
  • by just me Location: tally on Apr 26, 2011 at 07:09 AM
    For the...."I'm tired of paying for beachfront homes" people...It appears you have no clue as to what you are really paying for...just keep on can manufacture a new grievance next week for something else.
  • by dog Location: gone on Apr 26, 2011 at 05:42 AM
    If you can afford a second home you can afford to pay your own insurance, live on the coast,in a flood plain , you take the risk.
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