A Florida couple is leading the charge on behalf of an estimated 100,000 homeowners whose insurance coverage was increased without their approval. By upping the coverage, the plaintiffs say, the insurance company was able to raise premiums, again without the consent of the policyholders.
A class action lawsuit against five major U.S. mortgage lenders cannot proceed, according to a decision from a Miami federal judge. The plaintiffs were suing Bank of America, Citibank, JPMorgan Chase, Wells Fargo and HSBC, as well as two insurance companies, regarding the practice of forcing homeowners to pay higher-than-average premiums for insurance when their coverage lapses. The court did say that the 21 plaintiffs could file individual suits if they wished.
We are still reviewing the provisions of Senate Bill 7018, one of the Citizens Property Insurance Corp. reform proposals being considered by the Florida Legislature. In our last two posts, we discussed how the bill would change the rating structure and how it would limit eligibility for more expensive homes over the next few years.
The Florida Senate Banking and Insurance subcommittee has sent a bill to the full Senate that would revamp Citizens Property Insurance Corp. significantly. Members of the committee say the bill would take Citizens back to its roots as the insurer of last resort for the state’s residents. The company is currently the largest insurer in the state with 1.2 million policies.
Last September, the owner of a Seffner, Florida, home decided to buy sinkhole insurance. He says he had never really considered it before. An inspector came to the house, checked things out and gave him the thumbs up.
Given: The State of Florida will assess every property insurance policyholder if Citizens Property Insurance Corp. cannot pay all of its claims from its reserve. Assessments are the last resort for the state-run insurer of last resort. Citizens will not fold unless (or until) the Legislature says it will fold.
Once again, the Florida Legislature is debating ways to move Florida residents off Citizens Property Insurance Corp.’s rolls. The state-backed insurer is the largest property insurance carrier in the state, and lawmakers continue to worry that the company’s reserves will not survive a major catastrophe. If that happens, everyone loses, according to Citizens’ critics.
It seems that hardly a week goes by without another insurance provider being found guilty of wasteful, fraudulent, and exploitative business practices. With the stakes so high and matters such as a person’s house, car, or health on the line, any malicious or negligent activity on the part of an insurance company has the potential to irreparably damage a person’s life.
In an incident that would be very scary to any homeowner in Miami-Dade County, a woman in another state is lucky to be alive after a boulder rolled downhill and crashed into their home. The boulder crushed the wall and rolled into the couple’s bedroom, badly injuring the woman. Now the woman, her husband and the home’s owner are hoping the homeowners insurance company will help with the repair costs.
Living in Florida has its benefits, sun, warm weather and great beaches, but it also has a major downfall – hurricanes. Last week the Senate Banking and Insurance Committee announced that it is making changes to homeowners insurance in an effort to protect Floridians.
