February 06, 2012
By: Bruce Berry
Officials in Florida are continuing discussions on how best to reform their state-run property insurance firm, which has continued to accumulate risks.
Citizens Property Insurance, which was intended to serve as the state's home insurance company of last resort, has grown into the largest insurer in the state with more than 1.5 million policyholders, the Wall Street Journal reports. In addition, the paper says the Florida Hurricane Catastrophe Fund might need to reimburse homeowners insurance companies in the state up to $18.4 billion in the event of a major storm.
That significant risk has some officials looking to significantly hike home insurance rates in some parts of the state, making private insurance more attractive.
"We're dealing with a house of cards," Pam Bondi, Florida's attorney general, said during a November state cabinet meeting, the Journal reports.
Residents have expressed their displeasure in the developments, since their rates have continued to rise despite a lack of major storm damage. The state hasn't been hit by a hurricane in six years. It's also been six years since a hurricane made U.S. landfall when rated a Category 3 or higher.
Related Home Insurance Articles:
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- Safety officials call attention to home sprinkler system regulations May 24, 2012
- Thousands of St. Louis insurance claims cite recent hail damage May 22, 2012
- Tropical Storm Alberto changes course away from Carolinas May 21, 2012
- California tops the nation in dog bite claims May 17, 2012
