F.A.I.R. for Collier
Fighting Against Insurance Rates
After 15 years of trying to use state regulations, financial and insurance mechanisms to ensure availability and affordability for residential property insurance, the state realizes it hasn’t found the final solution to the issue. During this year’s general session of the legislature they will revisit property insurance again.
Let’s just take a quick look at the last few years of change to the property insurance law.
In January 2007 there was a special legislative session just to discuss and create a law to bring down the sky rocketing property insurance rates. Many things were accomplished during that session, most especially was Citizens Property Insurance rates were frozen to 2009 and then later extended to 2010.
In 2008 there was some fine tuning of the previously written bill. A Task Force was formed to study ways to return Citizens Property Insurance to its original role as a non-competitive residential market mechanism. Citizens receive 50,000 new applicants each month. At present there are about 1.1 million policy holders. Approximately 400,000 policies have been taken out of Citizens by other private companies. These companies must hold these policies for at least 3 years at rates no greater than Citizens. Citizens Wind Only policies are not being renewed. You must reapply for eligibility for a new policy. They are mainly looking at roofs, but do have some other criteria as well. If your home is in a wind-borne area and has an insured value of $750,000 or more you must have all openings brought up to the new FL building code. In 2011 this will be a requirement for all insurance companies. If a home is insured with Citizens, as of January 1, 2010, anyone wishing to purchase a home located in the wind-borne area with an insured value of $500,000 or more, must be provided a windstorm mitigation rating prior to the contract for sale and purchase. If Citizens incurs a deficit it may assess each of its policyholders 15% per account; may levy a 6% per account on all other private insured policies. If more money is needed in an emergency, a 10% assessment may be assessed on all policies.
The Task Force is suggesting to the legislature the following:
1. Annual premiums be raised on a statewide average to 10% a year for the next 3 years beginning in 2010.
2. The increase by territory to be no more than 15%
3. An increase to no more than 20% a year for individual Citizens policyholders.
4. Prohibit Citizens form insuring new homes and condominiums near the coast.
5. Enforce the 15% rule. If a private insurance company offer you a policy less than 15% of Citizens rate, then you must take it.
6. Require Citizens policy holders to take the takeout offer from private carriers.
My Safe Florida Home – The state was offering free wind inspections to all single-family home owners. The funding has hit a low and therefore they had to put this program on hold; however, I have been told that there may be a few inspections still available. The legislature will be discussing increased funding for this program.
State Farm Insurance
As most of you know State Farm is pulling out of the state of Florida. They became angry with the OIR when they would not give them a 47% increase in rates in September. The OIR also told them they had to issue credits or refunds up to $120 million to current or former policy holders who did not apply for or who did not receive wind loss mitigation credits and they must also pay $1 million in penalties.
Allstate was told to take on 100,000 new policy holders.
2009
At the beginning of 2009 a new condo insurance bill was created which makes it mandatory to have interior insurance and if a unit owner doesn’t get the insurance then the association is responsible for getting it and then bill the owner for the amount. There has been so much confusion and dissention over this bill that I feel sure that it will either be repealed or amended.
WHAT IS F.A.I.R DOING NOW?
Rebuild
After hurricane Ivan in 2004 hit the Panhandle area in the NW section of FL, a program call Rebuild of NW FL was established in January 2005.
It began as a grass roots group and then became a non -profit organization. Private citizens, government, private businesses, faith based groups, social services and builders got together to organize Rebuild. It provides homeowners to fortify their homes against a CAT 3 hurricane. For every dollar spent to mitigate a home, $4 to $16 are saved and helps to reduce insurance rates. The idea is to harden against hurricanes; not repair after hurricane. This program would be for homes built before 2002 and would have to be site built single family homes. This group received 2 state grants through My Safe Florida Home and grants from FEMA. F.A.I.R. is trying to get business leaders, private citizens and local government together to organize. We have names from the state to contact and guide us through this program; however, F.A.I.R. is not capable of taking on such a large project. We want to be the catalyst to get it organized.
Fighting Against Insurance Rates
After 15 years of trying to use state regulations, financial and insurance mechanisms to ensure availability and affordability for residential property insurance, the state realizes it hasn’t found the final solution to the issue. During this year’s general session of the legislature they will revisit property insurance again.
Let’s just take a quick look at the last few years of change to the property insurance law.
In January 2007 there was a special legislative session just to discuss and create a law to bring down the sky rocketing property insurance rates. Many things were accomplished during that session, most especially was Citizens Property Insurance rates were frozen to 2009 and then later extended to 2010.
In 2008 there was some fine tuning of the previously written bill. A Task Force was formed to study ways to return Citizens Property Insurance to its original role as a non-competitive residential market mechanism. Citizens receive 50,000 new applicants each month. At present there are about 1.1 million policy holders. Approximately 400,000 policies have been taken out of Citizens by other private companies. These companies must hold these policies for at least 3 years at rates no greater than Citizens. Citizens Wind Only policies are not being renewed. You must reapply for eligibility for a new policy. They are mainly looking at roofs, but do have some other criteria as well. If your home is in a wind-borne area and has an insured value of $750,000 or more you must have all openings brought up to the new FL building code. In 2011 this will be a requirement for all insurance companies. If a home is insured with Citizens, as of January 1, 2010, anyone wishing to purchase a home located in the wind-borne area with an insured value of $500,000 or more, must be provided a windstorm mitigation rating prior to the contract for sale and purchase. If Citizens incurs a deficit it may assess each of its policyholders 15% per account; may levy a 6% per account on all other private insured policies. If more money is needed in an emergency, a 10% assessment may be assessed on all policies.
The Task Force is suggesting to the legislature the following:
1. Annual premiums be raised on a statewide average to 10% a year for the next 3 years beginning in 2010.
2. The increase by territory to be no more than 15%
3. An increase to no more than 20% a year for individual Citizens policyholders.
4. Prohibit Citizens form insuring new homes and condominiums near the coast.
5. Enforce the 15% rule. If a private insurance company offer you a policy less than 15% of Citizens rate, then you must take it.
6. Require Citizens policy holders to take the takeout offer from private carriers.
My Safe Florida Home – The state was offering free wind inspections to all single-family home owners. The funding has hit a low and therefore they had to put this program on hold; however, I have been told that there may be a few inspections still available. The legislature will be discussing increased funding for this program.
State Farm Insurance
As most of you know State Farm is pulling out of the state of Florida. They became angry with the OIR when they would not give them a 47% increase in rates in September. The OIR also told them they had to issue credits or refunds up to $120 million to current or former policy holders who did not apply for or who did not receive wind loss mitigation credits and they must also pay $1 million in penalties.
Allstate was told to take on 100,000 new policy holders.
2009
At the beginning of 2009 a new condo insurance bill was created which makes it mandatory to have interior insurance and if a unit owner doesn’t get the insurance then the association is responsible for getting it and then bill the owner for the amount. There has been so much confusion and dissention over this bill that I feel sure that it will either be repealed or amended.
WHAT IS F.A.I.R DOING NOW?
Rebuild
After hurricane Ivan in 2004 hit the Panhandle area in the NW section of FL, a program call Rebuild of NW FL was established in January 2005.
It began as a grass roots group and then became a non -profit organization. Private citizens, government, private businesses, faith based groups, social services and builders got together to organize Rebuild. It provides homeowners to fortify their homes against a CAT 3 hurricane. For every dollar spent to mitigate a home, $4 to $16 are saved and helps to reduce insurance rates. The idea is to harden against hurricanes; not repair after hurricane. This program would be for homes built before 2002 and would have to be site built single family homes. This group received 2 state grants through My Safe Florida Home and grants from FEMA. F.A.I.R. is trying to get business leaders, private citizens and local government together to organize. We have names from the state to contact and guide us through this program; however, F.A.I.R. is not capable of taking on such a large project. We want to be the catalyst to get it organized.
This comment has been removed by the author.
ReplyDeleteThank you for posting such a useful, impressive blog about boat insurance.
ReplyDeleteboat insurance naples fl