Posted on 08/20/2009 2:02:12 AM PDT by Halfmanhalfamazing
As State Farm Insurance Co. prepares to leave Florida's homeowners insurance market, the state and the insurance industry say they're doing all possible to keep the insurance giant's 1.2 million policies out of the state-run pool. Florida Insurance "Commissioner [Kevin] McCarty has said there is an appetite in the private market for this business," said Tom Zutell, deputy director of communications for the Florida Office of Insurance Regulations. "If this is all done in waves, [it] will be a lot easier to integrate cancelled policies than if State Farm says it's canceling them all in the next six months."
The state is fighting to keep those policies out of Citizens, which recently approved a 10% rate hike to cover a $1.8 billion gap.
(Excerpt) Read more at miamitodaynews.com ...
The parallels between the president's public option and citizens down there in florida is pretty glaring IMHO.
As the article states, Florida is fighting to keep those policies out of Citizens, which is now the number 1 insurer down there.
Big surprise eh? *rolls eyes*
This is a great and easy example for people to understand about what's up with this public option.
After one real bad hurricane the Palm Beach post had a cartoon
showing two hands side by side flipping the bird.
Caption said the you’re in good hands with ALlstate.
And they haven’t gotten any better.
Goodbye and good ridence.
I think I’d rather have anybody over government.
If citizens has a 1.8 billion dollar shortfall.... How can any private insurer compete with a public option that can afford to be lacking of that much capitalization?
I don’t know if most people realize it, but even if you’re not covered under Citizens your insurance bill contains a line item for fees that are due to cover Citizens. So not only is our tax money taken, a portion of our premium goes to the state as well.
Charlie Crist (RINO) and that liberal Democrat Alex Sink got elected governor and chief financial officer by promising to force the insurance carriers to lower their rates. Alex Sink made this the central theme of her campaign. Anyone with half a brain knew what would happen next: the carriers would leave the state.
What’s going on is that people who live in high risk areas such as Martin, Monroe, Charlotte and Bay Counties want their home insurance subsidized by people who live in low risk areas such as Alachua, Clay, Lake and Leon Counties. In other words, they want people in Gainesville to pay more than they should so the people in Ft. Myers don’t have to pay as much as they should.
Insurance carriers don’t want to do that because not only is it unfair, but they also end up with a bunch of underpaid high risk policies and not enough overpaid low risk policies to offset.
Uh oh, government better take over State Farm.
You just described the future of Obamacare.
FL Hurricane Catastrophe Fund Assessment (1%) look for this to rise
Citizens Property Insurance Corp Assessment (1.4%) also set low for future increases
MGA Policy Fee $25.00
Emergency Management Trust Fund Surcharge $2.00 (look for this to rise)
All these fees subsidize the high risk folks on the coast and flood zones. Nice to know these millionaires get my money so they can enjoy risk free living 20 ft. from the storm surge. Thanks Charlie Crist!
I had been with State Farm for 20 years when they decided they were no longer going to offer HOI. We pulled all our policies before they could cancel us; HOI, 2 autos and a small policy to cover a couple of inherited items that we just decided to put in a safe deposit box.
Actually what I've heard is that most of the people right along the coast, say in Palm Beach or Jupiter Island, are self insured.
Good point....
To carry the analogy further, watch the program CSI Miami and the long, colorful and quite beautiful transition shots. Notice the fantastic houses and multistory buildings right on the water or waterfront.
Then consider a category 4 or 5 hurricane and the winds and tidal surge. It’s all gone....... The Florida insurance is all gone within 4 hours
Look, I've lived in this State over 50 years. Sink holes happen. If the correct geotechnical tests would have been done by developers rather than rubber stamped and permitted to build by these counties (for a larger tax base) there would be less uninsurable areas in Sumter County, Polk and other sink hole prone land. Just like there wouldn't be people living on top of a BOMBING range in Orange County.
Incidentally, when I dropped State Farm and switched to a local independant insurance company I was SHOCKED at how much lower our premiums were for the same coverage; approx. 40% lower.
Yes, I just changed mine on the 15th from Capital Preferred Insurance to a smaller A+ rated HO Insurer. My Premium is half of what I was paying. What a rip.
Good luck and happy hurricane season!
When I moved to Texas Allstated contacted me for insurance solicitation. I replied by telling them that since they were so reprehensible in Florida I’d never do business with them and in two years since haven’t had any other contact from them.
Funny, but I gotta believe the pretty lady in red on the Harley can just whup your bad ass.
You’n’me both, brother, you’n’me both! LOL
Thanks
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