State-run insurer $1.7 billion in red

[Aquawind]

Payback continues...

TALLAHASSEE — Citizens Property Insurance Corp. will add a 2 percent assessment to homeowners' annual premiums to help pay a $1.7 billion deficit at the state-run insurer.

Homeowners will pay a one-time charge of $20.70 for every $1,000 they pay in their premium this year. For the next decade after that, homeowners will pay $10 for every $1,000.

Citizens' board certified the deficit Thursday. After the Office of Insurance Regulation approves the assessment, insurance companies will pay Citizens and pass the charge on to customers.

The Legislature this spring paid $715 million of Citizens' deficit, using some extra sales tax money generated by post-storm rebuilding. The remainder of the bill is being split into two payments.

The extra charges will show up on policyholders' next annual bills. They'll be hit with a 1 percent surcharge on premiums through 2017.

The potential losses Citizens' covers has grown this year, as the company has picked up Florida homeowners dropped by private insurers. The state insurance pool is made up of more than 1.2 million policyholders, Chairman Bruce Douglas said.

That makes it the largest property insurance company in Florida. The state's second-largest insurer is State Farm Florida, with 1 million policies.

Citizens had 746,000 policies in July 2005.

The number has not grown as large as feared, however.

Citizens officials have been surprised to discover that one of two customers of the defunct Poe companies is turning down Citizens coverage.

"Either they are finding a home elsewhere, or they're going naked, which is very risky and I hope it's not the case," Douglas said.


http://www.news-press.com/apps/pbcs.dll ... 50425/1075

[flashflood]

"Either they are finding a home elsewhere, or they're going naked, which is very risky and I hope it's not the case," Douglas said.

What if some people had no hurricane insurance and a major hit the area and it was declared a disaster are. Would they get a grant from the government to pay their damages anyway? I am not sure how that works.

I do know someone who got a $10,000 grant after Andrew since she did not have insurance, which covered all of her damages.

[Aquawind]

I think they are refering to not having insurance after Poe is defunct. If it's a declared disaster zone the Feds will cover some living expenses at least. I suppose how you spent the money would be up to you. I suppose some Gov't employees or such might qualify for some special help. Although I do not know of any of those policies or guidelines.