Chances are, many of you have Citizens Property Insurance. It’s currently the largest property insurer in the state, but that wasn’t the goal when it came into existence in the 90s. The insurer was supposed to be a last resort, but that’s not the case anymore. In fact, Citizens Insurance has nearly 1.2 million policyholders, which is far too many households to cover without the right amount of surplus money.
The goal is to reduce the number of policyholders to around 450,000 policyholders. Why keep the policyholder count low? Because the larger Citizens Insurance is, if there’s a major storm, and the company’s surplus is eaten up, Florida residents are going to have to foot the bill. Not just its customers, but everyone. You heard that right. Too many customers, too many claims, and if there is not enough cash to cover the claims, then you will have to pay too.
That’s why companies like Citizens are on the hunt for reinsurance, something that protects insurance companies, and that is a challenge on its own. “After Ian, the private industry, as well as Citizens took a hit on our surplus, and so Citizens Insurance has less surplus to pay claims than before Ian. That’s why we’re out in the market trying to secure reinsurance,” Tim Cerio said. “That’s why a lot of private insurers are trying to secure reinsurance and get their risk transfer programs in place. But the reinsurance market is tough right now, over. I mean, it’s a worldwide issue.”
After Hurricane Ian, Citizens got hit with around 60,000 claims. With 65% of those coming directly from Southwest Florida. New reforms from a December 2022 special session are expected to help with that. For example, if any Citizens Insurance policyholder gets a quote from another insurer, and the quote is within 20% of what you’re paying at Citizens, you don’t have to take the deal from the other policyholder. You’ll get the boot from Citizens, though.
As Citizens starts to depopulate, they’ll give people at least 120-day notice prior to their renewal date. Their goal is to insure around 450,000 people.
Consumer Law Office – Handling Property Insurance Damage Claims & Disputes For Maximum Settlement.
If you are a victim of hurricane Ian or Nicole, let the Florida Property Damage Attorneys at The Consumer Law Office (CLO) help you receive the maximum property damage compensation you are entitled to under your insurance policy.
Contact CLO Today 305-940-0924 for a FREE Comprehensive Property Damage assessment and consultation. Visit https://consumerlawoffice.com/
Your insurance company has the resources to hire experts to protect their interests; your representation should be no different.
We only get paid when you get paid by your insurance company.
Contact CLO Today! 305-940-0924
