VIDEO: Class-Action Suit Filed Against Citizens Insurance
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Posted: 9:32 AM Feb 8, 2012
VIDEO: Class-Action Suit Filed Against Citizens Insurance
An 82-year-old woman from the Tampa Bay area trying to survive on a meager social security check is among customers of Citizens Property Insurance Corp. suing the insurer for the way it calculates replacement values.
Reporter: Associated Press; The News Service of Florida
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TALLAHASSEE, Fla. (AP) - Feb. 8, 2012 -

An 82-year-old woman from the Tampa Bay area trying to survive on a meager social security check is among customers of Citizens Property Insurance Corp. suing the insurer for the way it calculates replacement values.

Ruth Lauro said Tuesday that she isn't sure how long she'll be able to remain in her New Port Richey home of 33 years after her monthly homeowners insurance premium was increased $69. Lauro said she receives $630 monthly from Social Security.

A class action lawsuit filed in state court against the Citizens Property Insurance Corporation will be announced by plaintiffs, FAIR, the Beausoleil Law Group of Florida and Senator Mike Fasano on the steps of the historic Florida Capitol. Since at least 2010, Citizens has used a modified replacement value model called 360-Value to systematically and substantially overstate replacement value coverage for Florida consumers resulting in massive "back door" rate increases not intended by the Florida Legislature or approved by the Office of Insurance Regulation.

Sen. Mike Fasano said independent estimates on the replacement value on Lauro's home is about half of the Citizens estimate.

Citizens' spokeswoman Christine Ashburn said the insurer's goal is to establish an accurate replacement cost valuation to protect its policyholders and make sure they can restore their home after a catastrophic loss.

Latest Comments

Posted by: In the field Location: Florida on Feb 10, 2012 at 08:54 AM

I see quite often that people just don't understand the concept of insurance and how it is applied.
Posted by: Keith Location: Micco, Florida Barvard County on Feb 10, 2012 at 01:54 AM

The tropical storm that hit eastern florida, in 2008 was declared a desaster area. we had over 18 inchs of rain over three days. I suffered about 25,000 thousand dallars in damage. I had servere roof damage, which caused leaks inside my moble home. My car port screen-in room had several dents on top, due to hail. Must I go on. I turned in my claim to Citizens. I got a check to fix my roof for $2,500 dollars. I called them back up and told them it was not enought to fix my roof, let alone the damages inside. They sent another adjuster over to look at my porperty again. They cut me another check for about $1,500 dollars. They told me that is all you are going to get. I am paying the insurance company over $1600 dollars a year for coverage. My moble home is only worth about $67,000 dollars now. I paid over $90,000 three years ago. Whe am paying so much money for something that is going down in value each year. My premium has increased over $60.00 this year. Something has to give. In New York, where I have my primary resident. I am only paying $500.00. My home is worth over $190,000. Does everyone get the picture! Lets get some help down here!
Posted by: Gman Location: tally on Feb 8, 2012 at 03:19 PM

There is no uniform method of arriving at true "replacment cost" of a dwelling, IF there was statutory rules and/or guidelines establishing how this values was obtained, there may be some relief to the countless homeowners in this state! Who has the guts to stand up and make it happen? Then I will tell you how to bring the rates down!! Aske me, I KNOW!!!
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