Citizens Insurance Representatives Explain Rate Increases & Depopulation Effort at South Dade Government Center

The board of the state run  Citizens Property Insurance Corp. voted to raise rates by a statewide average of 7% next year, adding $178 million in new insurance costs for policyholders.
Most property owners will face a 10.7% hike. That would translate to an average premium increase of as much as $300 or $400 a year.
Residents in Miami-Dade and Monroe Counties will have a chance to sound off to Citizens Insurance Representatives on Wednesday, July 16th at the South Dade Government Center located 10710 SW 211 Street Conference Room 104.  The meeting will run from 6:00PM-7:30PM.

All issues raised by the residents will be addressed from upcoming rate increases to the Depopulation efforts.

 

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Citizens Depopulation: Florida Senate set to review $52M "Sweet Deal" with Heritage Insurance

The scam artists in the Florida State Legislature have set in motion a Depopulation effort of Citizens Insurance company to supposedly save the State from assuming claims should a hurricane land on our shores.  Something we all know it's inevitable  as policyholders in state Florida with or without Citizens Insurance.  This is because companies like Heritage and Weston Insurance will go belly up when a hurricane hits and the State will have to take them over.   The only difference is that these private insurers' shareholders will have taken all the money doled out to them by the State Legislature before the companies collapse. You see Heritage's shareholders are made up of politically well connected campaign contributors.  This company like several others have been set up to "help" Citizens depopulate itself from policyholders.  Now the Senate in a disingenuous attempt at transparency wants to review the sweat deal provided to Heritage Insurance.  If they were really interested in helping out the people of this state they would null and void the Citizens Depopulation effort.  That is not to be, so the Senate will hold a sophomoric attempt at theatre they call legislative oversight.  This is only happening because people have been flooding the Senators' phones expressing angst at this travesty.  

However, If the people know what's good for them they would Opt-Out from this sham and then sit back and watch Heritage and their ilk go into bankruptcy where they belong.  Unfortunately, the machiavellian Governor and State Legislators have forced Citizens to make the Opt Out procedure counterintuitive in the hopes that people just forget about the Citizens letters that came in the mail.  They may very well be successful for the insurers and marketers employ behaviorists to achieve the ends they set forth in their schemes. The unsuspecting property owners will have their homeowners policies assumed by the likes of Heritage and Weston Insurance companies after the 30 day grace period from the assumption date on the letter. These fly-by-night insurers deserve nothing but contempt from the homeowners for they will not exist long after a hurricane hits Florida.  Recently the Miami Herald performed an analysis and it reflected that insurers in Florida go under at a rate of 30% as 6 of 18 insurers set up to take Citizens policies have gone bankrupt.  This is happening with No Hurricanes so one can only imagine what will happen to the other 12 private insurers once a severe storm aims for our state.

Reference Links:
TALLAHASSEE: Senate to review ‘unique’ $52 million Citizens insurance deal - Business - MiamiHerald.com

OPT OUT: Citizens Insurance under Depopulation in Preparation for Active Hurricane Season

Private Insurers in Florida Failing Despite No Hurricanes!

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Private Insurers in Florida Failing Despite No Hurricanes!

The Miami Herald (MH) has a good article analyzing the long list of failed private insurers, their rating agencies and the fleecing of Citizens insurance and by proxy the taxpayer.  HIH has been saying this all along with our article: Opt Out: Citizens Insurance under Depopulation in Preparation for Active Hurricane Season.  We're glad to see MH has picked it up as it should continue  to expose the revolving door in effect with private insurers in Florida.  They come, they fleece, they go!  Modern carpetbagging at its worst all facilitated by the Governor and Sate Legislature. 

MH performed a worthwhile analysis that all homeowners should read so they may make better informed decisions regarding their insurers options.  

Click on the link below for the full article.

TALLAHASSEE: Despite no hurricanes, many ‘takeout’ insurers fail - Florida - MiamiHerald.com

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OPT OUT: Citizens Insurance under Depopulation in Preparation for Active Hurricane Season

It's been seven years since we've been hit with a major hurricane.  In preparation for our luck to run out Citizens Insurance is being dismantled by Gov. Rick Scott and the Legislature via a Depopulation effort of policies from the insurer.  They have set in motion a Rube Goldberg machine that will effectively boot everyone out of Citizens and into the hands of fly-by-night private insurance companies.  Companies that were created with seed money from the profits of guess who?  Citizens Insurance of course; Corporate Welfare of the worst kind!  Profits that were unnecessarily generated by ever increasing rates with the false premise that the company was not sufficiently funded.  Lies and smoke screens by a Governor and State Legislature that's disturbingly obsessed with finding all solutions in the private insurance market. We were here when Hurricane Andrew hit South Florida and the private insurers cancelled policies and/or went bankrupt as a result.

 If you're thinking Depopulation of Citizens and over to private insurers such as Allstate, State Farm, Nationwide, USAA, Farmers, Prudential and other big firms, think again. Those companies wont come to Florida bearing their name.  They know that they cannot withstand the loses of a major storm keeping their good name intact.  The insurance market in Florida is kryptonite to viable insurance companies hence why Citizens Insurance exists. It's the only way for the citizens of our state to maintain affordable homeowners insurance.  Notwithstanding the shenanigans concocted by our Governor and State Legislature to make it appear that Citizens is not viable.  

The companies being offered are listed below to gladly take your money and increase your rates at their whim, because if you're thinking they'll be any cheaper than Citizens, think again.  They are "for-profit" entities that stay afloat with customer premiums plus the subsidies Citizens Insurance is doling out. Fortunately there is an Opt Out Form available so people that know better can stay away from these companies.  The choice is your but you have to act upon receiving an assumption letter.  You only have 30 days from the date in the letter to contact their agent, submit the form and have the company process the opt out letter.  They didn't make it an easy process on purpose so it's up to you, the clock is ticking. 

07/09/2013 Assumption

• Southern Oak Opt Out Form

6/28/2013 Assumption

• Heritage Property & Casualty Opt Out Form

06/04/2013 Assumption

• Tower Hill Select Insurance Company Opt Out Form

05/31/2013 Assumption

• Weston Insurance Company Residential Opt Out Form

05/17/2013 Assumption

• Weston Insurance Company Opt Out Form

05/16/2013 Assumption

• Weston Insurance Company Commercial Residential Opt Out Form
• Weston Insurance Company Commercial Non-Residential Notification

05/07/2013 Assumption

• Southern Oak Opt Out Form

05/02/2013 Assumption

• Weston Insurance Company Commercial Residential Opt Out Form
• Weston Insurance Company Commercial Non-Residential Notification

04/09/2013 Assumption

• Heritage Property & Casualty Opt Out Form

03/22/2013 Assumption

• Weston Insurance Company Opt Out Form

03/05/2013 Assumption

• Safe Harbor Opt Out Form
• Southern Oak Opt Out Form

Miami Herald Excerpt:

There were 19 named storms last year and experts are predicting another busy season in 2013, continuing what has been an active cycle over last decade.

The National Oceanic and Atmospheric Administration’s (NOAA) Climate Prediction Center, which issues the government’s annual pre-season forecasts, warns there could be from 13 to 20 named storms this year compared to the average of 12. Seven to 11 could become hurricanes, with up to six becoming major hurricanes with wind speeds topping 111 mph.

Reference Link:

Read more here: http://www.miamiherald.com/2013/05/30/v-fullstory/3424627/florida-braces-for-another-active.html#storylink=cpy

Florida braces for another active hurricane season - Hurricanes - MiamiHerald.com

 Citizens Insurance Depopulation Update - Watch Out For Assumption Notice and Opt Out Form 

Citizens Windstorm Insurance - Depopulation Effort Underway

http://www.childresslawyers.com/2012/10/15/opinions-re-citizens-property-insurances-proposed-depopulationsurplus-loan-program/

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FL Gov. hammers Citizens Insurance after signing bill - Depopulation Continues

Miami Herald Excerpt:

Scott on Wednesday signed a bill that includes modest steps to shrink the size of the state-created Citizens Property Insurance Corp. The bill (SB 1770) creates a new "clearinghouse" designed to steer homeowners into private insurers instead of obtaining coverage through Citizens. The legislation also phases in over three years a $700,000 cap on the value of homes that can be insured by Citizens.

HIH POV:
See previous blog articles:
 Citizens Insurance Depopulation Update - Watch Out For Assumption Notice and Opt Out Form 

Citizens Windstorm Insurance - Depopulation Effort Underway

Reference Link

Read more here: http://www.miamiherald.com/2013/05/29/3422690/fla-gov-criticizes-insurer-after.html#storylink=cpy

TALLAHASSEE, Fla.: Fla. Gov. criticizes insurer after signing bill - Florida Wires - MiamiHerald.com

http://weblogs.sun-sentinel.com/news/columnists/mayo/blog/2012/10/fun_facts_about_citizens_insur.html

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No Hurricanes in 7 years but Florida insurance rates keep rising

Miami Herald Excerpt:

The biggest expense remains the cost of "reinsurance" - which is the money an insurer spends with an out-of-state or foreign company to provide the company financial backing in case of major claims.
Other causes that have been cited include millions in other types of losses such as sinkholes. A Pulitizer Prize-winning series in 2010 by the Sarasota Herald-Tribune pointed out how insurers paid out millions in bonuses to company executives or had large overhead costs compared to the rest of the nation.
Plus, McCarty conceded all rate filings are allowed to include some percentage of profit for private insurers.
Sean Shaw, the former insurance consumer advocate for the state, put the blame on the Florida Legislature for siding too often with the insurance industry.

Read more here: http://www.miamiherald.com/2013/05/27/3418973/7-years-without-storms-but-fla.html#storylink=cpy

TALLAHASSEE, Fla.: 7 years without storms but Fla. rates keep rising - Florida Wires - MiamiHerald.com

HIH POV:

The current Governor and State Legislature believe the private homeowners insurance market is viable if a storm should hit.  Fact is we've been here before and the moment a storm hits our shores bankruptcy is their best solution to avoid paying claims.  Citizens Insurance Corp is our only saving grace but the State government wants to dismantle the company as we know it.  Click on the pulitzer.org link below to gain an awareness of how we're being fleeced and the worst part, it's all legal.

Reference Link:
http://homesteadishome.blogspot.com/2013/05/citizen-insurance-depopulation-update.html

http://www.pulitzer.org/archives/9194

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Citizens Insurance Depopulation Update - Watch Out For Assumption Notice and Opt Out Form

As reported before on HIH the Citizens Depopulation effort is in full swing. Examples of what to watch out for in the mail are included.  You only have 30 days from the Assumption Notice date to OPT OUT so there's no time to waste once you receive the letter.  You must contact your insurance agent if an OPT OUT form is not included with the Assumption Notice.  Coincidentally we did not receive one.  It's not by chance but by design so you have to be proactive to assert your desires to through your insurance agent.

This shameless trickery by the Florida Legislature in cahoots with Governor Rick Scott is an attempt to turn Citizens Insurance into a less viable alternative for the citizens of Florida.  They seem to think we have forgotten what happened 21 years ago when Hurricane Andrew left Homestead in shambles almost erasing it off the map.  Private insurers at the time were going out of business in droves dropping policies on the doorsteps of the State Government because they could not sustain the losses of a major hurricane.

This is how Citizens Insurance came about once all the private insurers pulled out.  Private insurers are only back to take our money because the Governor and State Legislature have sweeten the deal by providing Citizen Insurance profits as seed money for their fly-by-night insurance start-ups. Experience has shown us that these companies will go belly up once a major hurricane hits South Florida.  They are unsustainable enterprises and are only in business first to take our hard earned money and second because of the mistaken philosophical belief that free market forces are  viable in the windstorm insurance industry.

Fact is folks, windstorm insurance is just like flood insurance, which is run by the National Flood Insurance Program (NFIP) because no private insurance company will touch it.  Simply put the losses incurred during floods outstrip the premiums collected that would be viable in the marketplace.  If private insurance companies were issuing policies for flood, the rates would be so high most of coastal Florida would be depopulated since no one would be able to afford the premiums.  Never mind that no bank would finance real estate ventures without flood insurance.  Windstorm is no different and a national program should exist but political ideology currently trumps logical reasoning in the US Congress and the financial welfare of citizens is an afterthought.

Florida was a pioneer in creating a State run windstorm insurance company while Louisiana did the same after Hurricane Katrina.  Citizens Insurance company makes a profit, it's sustainable,  and it's our only saving grace if a major storm head our way.  You can do something about stopping the dismantling of Citizens by Opting Out and staying with Citizens Insurance.  Examples of the letters received by a Homestead family are provided to you for your awareness. Be on the look out; they are coming your way!



Reference Link
http://homesteadishome.blogspot.com/2013/05/citizen-windstorm-insurance.html

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Citizens Homeowner Insurance HO-8 Policy Offers Cheaper Rate

Here's a Citizens Homeowners Insurance no-frills policy that's not being advertised. For homeowners wanting the lowest coverage possible and would like to assume more risk this policy is for you.  Check with your mortgage company first to confirm if they accept the HO-8 insurance.

Reference Links:
https://securesupport.citizensfla.com/app/answers/detail/a_id/1504/kw/HO-8

http://www.tampabay.com/news/business/banking/citizens-downplays-cheaper-property-insurance-option/2121709

TALLAHASSEE: Citizens offers cheaper rate option with no fanfare - Business - MiamiHerald.com

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Citizens Windstorm Insurance - Depopulation Effort Underway

Hello fellow Citizen Windstorm Insurance policy holder in South Dade,

Right about now you should be receiving a letter in a Citizens Windstorm Insurance envelope with a Weston Insurance Company offer or other literature.   There are other companies as well but for the sake of argument, I'll use Weston Insurance as the example.  You will also receive a Weston Insurance Opt-Out letter and have 30 days to sign and return it so that you may stay with Citizens Windstorm Insurance.  Otherwise, if you don't return it, your policy will be transferred to Weston Insurance at renewal and you will no longer be able to return to Citizens Windstorm Insurance.   Well you may be able to return but at the new exorbitantly higher new rates passed by our Legislature and signed by the Governor.

As you may already know the current Legislature and the Governor have made one of their missions  this year to end Citizen Windstorm Insurance as we know it.  They want to turn it into an insurance of last resort.  This insurance company was created and backed by the State of Florida as a result of Hurricane Andrew in 1992.  We are well aware of what happened during that time as we were ground zero for its effects.  We are also well aware that private insurance companies went belly up during that time as a result of the hurricane and were no where to be found when claims started pouring in.

Fact is fellow citizens these new insurance companies have been created by incentives provided by Citizens Windstorm Insurance surpluses.  Fact is Citizens is a profitable and well run company with over 1M policies backed by the State of Florida.  We all know how this story is going to end when a hurricane end up on our shores.  We have been here before and the new private Windstorm Insurance companies will go bankrupt upon encountering significant losses.  That's what private Windstorm Insurance companies do to avoid paying out more in claims than they have in the bank.  Except in that case the state doesn't have to back the private companies as they have to with Citizens Windstorm Insurance. That's the crux of why the Legislature and Governor want to end Citizens.  We will be left hanging dry once these companies go bankrupt and at the mercy of whatever aid the State and Federal government are willing to provide.

Below is a sample of what to look for and by all means do not throw the letter away thinking it's some sort of advertisement.  The choice is yours and ignorance is not a viable excuse.   You have to actively op-out if you don't want to be switched to the new companies participating in the Citizens Windstorm Insurance depopulation effort.  Contact your homeowners insurance agent right away!

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