FL Residents--Does it bother you that...

[TnTsParty]

Homes which are well built/up to code with owners with good credit and a good claims history will have no problem getting home owners insurance privately.Anne

It bothers me that you are ASSUMING that everyone that is insured by Citizens either lives in a mobile home, is majorly rich and HAS to live by the coast, has an unkempt falling apart house, files lots of claims etc. Well I can tell you that is NOT the case. I for one have to be insured by Citizens for both my homeowners and my windstorm - yes I have to have 2 seperate policies. As a matter of fact ANYONE who lives east of I-95 in my area has to have Citizens for the windstorm due to no private insurer will insure in that area (for the record that is a LARGE area that covers ALL classes of people and homes) My father (who made sure when he built his house that it had extra extra huricane protection) has to have Citizens and he has perfect credit and a good claims history. My house is well maintained/up to code and I have NO claims. I am in a situation where I have no choice because first of all I was born and raised in this area and second when I purchased my house it was at a price that I can afford and now with the way housing costs have skyrocketed in my area there is no way I could move somewhere else (except way out of my area and away from my family and everything that I have ever known.)

The past 2 years of hurricanes have proven that these storms are unpredictable and that vertially no part of the state of Florida is safe from a category 5 storm - who would have thought 3 storms would have plowed through the Orlando area!!

So yes it bothers me that Citizens is raising rates not only for me but for everyone else - then again I am already FORCED to pay a higher rate to start with.

 

[Talking Hands]

Unfortunately the law is written so Citizen's most chartge a rate higher than any of the private companies. So as the private insurance companies raise rates Citizen's goes up as well.

 

[ducklite]

It bothers me that you are ASSUMING that everyone that is insured by Citizens either lives in a mobile home, is majorly rich and HAS to live by the coast, has an unkempt falling apart house, files lots of claims etc. Well I can tell you that is NOT the case. I for one have to be insured by Citizens for both my homeowners and my windstorm - yes I have to have 2 seperate policies. As a matter of fact ANYONE who lives east of I-95 in my area has to have Citizens for the windstorm due to no private insurer will insure in that area (for the record that is a LARGE area that covers ALL classes of people and homes) My father (who made sure when he built his house that it had extra extra huricane protection) has to have Citizens and he has perfect credit and a good claims history. My house is well maintained/up to code and I have NO claims. I am in a situation where I have no choice because first of all I was born and raised in this area and second when I purchased my house it was at a price that I can afford and now with the way housing costs have skyrocketed in my area there is no way I could move somewhere else (except way out of my area and away from my family and everything that I have ever known.)

The past 2 years of hurricanes have proven that these storms are unpredictable and that vertially no part of the state of Florida is safe from a category 5 storm - who would have thought 3 storms would have plowed through the Orlando area!!

So yes it bothers me that Citizens is raising rates not only for me but for everyone else - then again I am already FORCED to pay a higher rate to start with.

Citizen's should charge whatever it takes to have adequate reserves, and if people can't afford the insurance they will have to move. Bottom line, End of story. I don't care if you are rich, poor, or in between, if you can't afford to live there without subsidy, than you need to move.

You do have a choice, you can move to another area, you choose not to. Why on earth should I have to subsidize your choice of where to live? Don't give me that it's not a choice, last I knew we lived in the USA, not China, and you can choose to live whereever you can afford. I live near Orlando, I have a cousin I'm not close to in the Tampa area, otherwise my closest relatives are 1000 miles away.

I pay my insurance premium to teh company taht insures me, and if they ahve a lot of losses, I expect my rates to go up. I do not think I should ahve to subsidize customers of another company. If the company taht insures me has a lot of cat losses, will Citizen's charge all their customers higher premiums to bail out my company? No. So why should I have to bail out Citizen's. If they were STUPID enough no not have high enough premiums to their insureds to begin with, it's not my fault. Bottom line, they need to cahrge high enough premiums to their customers to have adequate reserves to cover their losses, and not expect bail outs from those who have insurance with other companies.

Anne

 

[TnTsParty]

Citizen's should charge whatever it takes to have adequate reserves, and if people can't afford the insurance they will have to move. Bottom line, End of story. I don't care if you are rich, poor, or in between, if you can't afford to live there without subsidy, than you need to move.

You do have a choice, you can move to another area, you choose not to. Why on earth should I have to subsidize your choice of where to live? Don't give me that it's not a choice, last I knew we lived in the USA, not China, and you can choose to live whereever you can afford. I live near Orlando, I have a cousin I'm not close to in the Tampa area, otherwise my closest relatives are 1000 miles away.

I pay my insurance premium to teh company taht insures me, and if they ahve a lot of losses, I expect my rates to go up. I do not think I should ahve to subsidize customers of another company. If the company taht insures me has a lot of cat losses, will Citizen's charge all their customers higher premiums to bail out my company? No. So why should I have to bail out Citizen's. If they were STUPID enough no not have high enough premiums to their insureds to begin with, it's not my fault. Bottom line, they need to cahrge high enough premiums to their customers to have adequate reserves to cover their losses, and not expect bail outs from those who have insurance with other companies.

Anne

I am sorry if you are not close to your family but I am and I was born and raised in this area its not like I moved here. And I am sorry its not as easy as you say - just pick up and move - MOVE WHERE!!!!! If I sold my house and moved somewhere else I wouldn't be able to afford the insurance or tax rates elsewhere and if I could would I be assured of having a job - you fail to understand that its NOT by choice that I am staying here - first of all I have a decent job and a house that I can afford - I am not just going to pull up my source of income to move to another area that can just as likely to be hit by a hurricane. I am sorry but you offend me and make it seem like we are accepting welfare by your statement - if you can't afford to live there without subsidy, than you need to move. - You fail to realize that its NOT BY CHOICE THAT WE HAVE TO HAVE CITIZENS - You also have the choice to move out of Florida so that your insurance company won't charge you extra for Citizens shortfall.

 

[ducklite]

I am sorry if you are not close to your family but I am and I was born and raised in this area its not like I moved here. And I am sorry its not as easy as you say - just pick up and move - MOVE WHERE!!!!! If I sold my house and moved somewhere else I wouldn't be able to afford the insurance or tax rates elsewhere and if I could would I be assured of having a job - you fail to understand that its NOT by choice that I am staying here - first of all I have a decent job and a house that I can afford - I am not just going to pull up my source of income to move to another area that can just as likely to be hit by a hurricane. I am sorry but you offend me and make it seem like we are accepting welfare by your statement - if you can't afford to live there without subsidy, than you need to move. - You fail to realize that its NOT BY CHOICE THAT WE HAVE TO HAVE CITIZENS - You also have the choice to move out of Florida so that your insurance company won't charge you extra for Citizens shortfall.

It's the equivelent of welfare--getting a handout because you can't afford market rates. Citizen's needs to raise it's rates to cover their own mistakes--undercharging their customers. My insurance company can't get your's to bail them out, why should your's force mine to bail out their poor actuarial skills?

WHy is it any different than you are renting a home, and the landlord raises the rent. Should I then have to pay more in my mortgage payment to cover your rent? Same idea.

Anne

 

[C.Ann]

TnTsParty has indicated that in the area she resides in there are no other insurance choices available (or willing to write a policy - regardless of price), so Citizen's is not an "option" - it's a must.. The only other alternative is no insurance at all..

If in fact that is the case (if I'm not reading her response wrong), what is the alternative? To leave that area uninhabited? I'm confused..

 

[ducklite]

Actually FOR A PRICE some of the premium companies WILL write in areas that no one else will. They want you to take a $1M umbrella policy with your autos and home under it. It's costly, but it IS available. So no, Citizens IS NOT the only alternative. It's just the only one people are willing to pay for. The problem is that they are paying below market rates and expecting the rest of us to subsidize them, which is just wrong.

Anne

 

[C.Ann]

Actually FOR A PRICE some of the premium companies WILL write in areas that no one else will. They want you to take a $1M umbrella policy with your autos and home under it. It's costly, but it IS available. So no, Citizens IS NOT the only alternative. It's just the only one people are willing to pay for. The problem is that they are paying below market rates and expecting the rest of us to subsidize them, which is just wrong.

Anne

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Ahh.. I see.. But on the other hand, isn't the fact that you're being asked to subsidize Citizen's kind of the same thing as all of the larger insurance companies increasing premiums for everyone across the country to make up for their losses in the areas that were hit by the hurricanes?

 

[ducklite]

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Ahh.. I see.. But on the other hand, isn't the fact that you're being asked to subsidize Citizen's kind of the same thing as all of the larger insurance companies increasing premiums for everyone across the country to make up for their losses in the areas that were hit by the hurricanes?

Yes, but here's the difference. You choose that insurer. My rates will go up to help my company offset losses of their insured's. I have no problem with that. What I have a problem with is my rates going up to offset the losses of a company I am not insured with. If the company I insure with has losses, they are not allowed to pass these along to other insurer's. Why is Citizen's being allowed to pass their losses on to other's? KWIM?

Anne

 

[C.Ann]

Why is Citizen's being allowed to pass their losses on to other's? KWIM?

Anne

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I'm not real up on this, but I thought I read something in the newspaper about Citizen's.. Isn't that actually a "state" sponsored insurance plan as opposed to the private ones you have spoken of? And if so, wouldn't it be up to the state to pitch in the additional money?

 

[ducklite]

--------------------------------------

I'm not real up on this, but I thought I read something in the newspaper about Citizen's.. Isn't that actually a "state" sponsored insurance plan as opposed to the private ones you have spoken of? And if so, wouldn't it be up to the state to pitch in the additional money?

This is true, it is state sponsored. My point is that they should be charging high enough premiums to cover their losses and fund their reserves, without making a profit (thus keeping rates lower than private insurers would charge) but still have enough to cover their operating costs and losses without having to pass any expense on to taxpayers or other insurer's. I would have absolutely no problem with this quasi-public company if they operated under taht business model.

I'm not against helping people in high risk areas in this capacity. I am against bailing them out because of where they choose to live. And it is a choice, regardless of how long you've lived there or where your freinds and family are.

Anne

 

[C.Ann]

This is true, it is state sponsored. My point is that they should be charging high enough premiums to cover their losses and fund their reserves, without making a profit (thus keeping rates lower than private insurers would charge) but still have enough to cover their operating costs and losses without having to pass any expense on to taxpayers or other insurer's. I would have absolutely no problem with this quasi-public company if they operated under taht business model.

I'm not against helping people in high risk areas in this capacity. I am against bailing them out because of where they choose to live. And it is a choice, regardless of how long you've lived there or where your freinds and family are.

Anne

--------------------

Okay..got it..

I do have to take issue with your last paragraph though.. Shouldn't the advice you have given others on this thread apply to you as well? Meaning - if you don't like this surcharge, you too are free to move - to a state where it wouldn't apply..

 

[mickeyfan2]

I am not a FL resident, but this is wrong. You are now paying more than the going rate for your insurance so they can pay less.

 

[ducklite]

--------------------

Okay..got it..

I do have to take issue with your last paragraph though.. Shouldn't the advice you have given others on this thread apply to you as well? Meaning - if you don't like this surcharge, you too are free to move - to a state where it wouldn't apply..

I'm not the one asking for a handout, or insured by a company asking for a handout. I'm sitting here paying my own way.

If everyone in my position left the state, those paying market rates for insurance and not suffering losses would leave those looking for a handout in quite the pickle, no?

Anne

 

[mickeyfan2]

We had no problem with Tower Hill either. They told us to pick up the carpet and get needed repairs done and submit the bills. They even waived the depreciation for contents.

The problem was that our agent (Countrywide) was no longer going to carry Tower Hill in Florida. We tried to renew the policy through a local agent, but all policies were on hold. We were up for renewal in September, but all the agencies were gone here because of hurrican damage. The legislature had to step in and require these renewals.

But, we have since renewed with Tower Hill and are very, very satisfied. Everyone I know who had Allstate, State Farm, etc, has been caught in a nightmare.

The fact this insurance companies are going to do what they are required to do by the legislatures. Some do more and some try to get away with it.

WOW you and MizBlu sure have the exact same problems:

From the "other FL insurance thread post #119:
"Right before Charley, we were told our policy wasn't being renewed because the agent, Countrywide, was no longer carrying Tower Hill. We then made arrangements through another agency which had arranged to write a new policy with Tower Hill. Tower Hill then gave us the same spiel about not writing anymore new policies in Florida. Soon afterwards, the FL legislature stepped in and we were able to renew our policy with Tower Hill through Countrywide. We just renewed again in September. "


You even renew in the same month. WOW this is amazing!!!!!!!


Could you both be the same person?

 

[ducklite]

I am not a FL resident, but this is wrong. You are now paying more than the going rate for your insurance so they can pay less.

Thank you! This is EXACTLY the point!

Anne

 

[C.Ann]

I'm not the one asking for a handout, or insured by a company asking for a handout. I'm sitting here paying my own way.

If everyone in my position left the state, those paying market rates for insurance and not suffering losses would leave those looking for a handout in quite the pickle, no?

Anne

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I understand that.. The people who are paying less for their insurance are having problems and your advice has been to pay more or move..

But the other side of that coin is people complaining that they will have to pay a surcharge due to the underfunding of Citizen's..

Both sides are complaining - but both sides have the same options, correct? Pay more or move..

 

[Planogirl]

Do I understand correctly that certain insurance companies wanted to quit writing policies but the state of Florida is forcing them to continue? I just wondered because a few companies decided to quit writing policies in Texas due to mold issues and I don't believe that the Texas government ever stepped in.

 

[ducklite]

----------------------------

I understand that.. The people who are paying less for their insurance are having problems and your advice has been to pay more or move..

But the other side of that coin is people complaining that they will have to pay a surcharge due to the underfunding of Citizen's..

Both sides are complaining - but both sides have the same options, correct? Pay more or move..

The point is why should those of us who are not their insureds have to pay to bail them out. The surcharges should be distributed around to their insureds, not everyone else, otherwise it's nothing more than welfare for people who are far from indigent. If MY carrier was equally allowed to pass their losses on to those insured by Citizen's, I might look at it differently. but that is not the case. It's not a level playing field, and that's the problem.

Anne

 

[C.Ann]

The point is why should those of us who are not their insureds have to pay to bail them out. The surcharges should be distributed around to their insureds, not everyone else, otherwise it's nothing more than welfare for people who are far from indigent. If MY carrier was equally allowed to pass their losses on to those insured by Citizen's, I might look at it differently. but that is not the case. It's not a level playing field, and that's the problem.

Anne

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I understand the "why" of the situation, but the same advice you have given to those folks should apply to yourself as well - shouldn't it? If it bothers you to have to absorb these extra costs, you have the exact same option as people who have been let down by Citizen's - move so you don't have to deal with it.. Correct?

I guess what I'm getting at is why is it okay for you to complain and remain in the same location where the problems exist, but when others complain, you tell them to move?