We are continuing our discussion of proposals presented to Florida’s governor and other lawmakers by Citizens Property Insurance Co. The governor directed the insurer several weeks ago to devise a plan that would improve its viability — and not just any plan, but a plan that did not involve legislative action.
The chairman of the board of Citizens Property Insurance Co., Florida’s state-backed insurer, spoke to a roomful of state officials earlier this week. He brought with him 31 new proposals for steps the over-burdened insurance company can take to reduce its exposure, but he also brought the same message the company has delivered throughout the process: Not much will change without a serious overhaul of public policy.
As Florida homeowners track arguments between the state and Citizens Property Insurance Co. over sinkhole coverage, they are keeping an eye on Washington. Last week, the National Flood Insurance Program was granted a reprieve — its second since the program officially expired in September. This extension will last another few weeks, at which point debates over coverage for wind and water damage will likely be postponed until 2012.
When Florida Governor Rick Scott threw down the gauntlet a couple of weeks ago, he expected the board of Citizens Property Insurance Company to come back with strategies that would help the company trim its budget and grow its reserve. The state-backed insurer may have taken the governor and the Legislature by surprise when it came back earlier than expected with requests for legislative action.
Two weeks ago, Florida’s governor asked the board of Citizens Property Insurance Company to get its house in order. Concerned that the state’s insurer of last resort would not be able to meet the financial demands of a major storm, the governor chastised Citizens’ management team for allowing the company to become so large without safeguarding its financial stability.
Florida’s Gov. Rick Scott has come close to issuing an ultimatum to the board of governors of Citizens Property Insurance Corp. The governor challenged the board on Tuesday to come up with ways the insurance company can better meet its obligations in the event of a big storm. Lawmakers around the state agree with Scott that Citizens would fail altogether if a hurricane or series of hurricanes were to hit.
In our last post, we were talking about the risks associated with Halloween. As wonderful as it is, Halloween can turn into a nightmare if a trick-or-treater slips and falls in a homeowner’s yard. It’s also a time of year that presents a host of opportunities for vandals and thieves. Property insurance policies may cover pranks and cranks, but there may be a few easy ways to avoid that injury or damage altogether.
It seems a shame, but Halloween is really pretty risky. In the “old days,” the primary concern was about tainted candy. Urban legends abound about the innocent 5-year-old trick-or-treater in a Miami suburb — right on the block where a friend of a friend lives — who bites into a rosy red apple, only to find a razor blade or surgical needle. You couldn’t swing a black cat without hitting some kind of terrifying tale of danger to life, limb and property.
In our last post, we were talking about the state’s Hurricane Catastrophe Fund. The fund was established to help Florida’s property insurance companies pay claims after a major storm. Recently, financial analysts determined that the fund, in its current state, would be unable to cover a big storm.
Miami remembers Hurricane Andrew. The 1992 storm devastated South Florida and swept away the reserves of insurance companies in the area. Florida lawmakers responded by establishing a hurricane fund that would help insurers pay homeowners’ property claims if a storm were to level part of the state.
