Home Insurance Buyers Guide, LLC

The Daytona Beach News Journal ran a story on August 7, 2008 written by Bob Lotane called “Insurance rates v. state solvency: Did overreaction create a crisis?

The article highlights the tremendous risk and financial consequences associated with homeowners insurance in Florida that are now squarely on the backs of all Floridians.

And quite frankly the article points out some shocking realities with Florida property and casualty insurance that very few people are paying close attention to:

• Citizens Insurance Florida executives told the Florida legislature in 2008 that the rates charged by Citizens Property Insurance Corporation are far below what is considered to be mathematically adequate.
• Takeout companies that have been approved to take Florida home insurance policies out of Citizens Insurance Florida are very thinly capitalized.  Those companies do not have the management experience to manage through the aftermath of a Florida hurriance.  To make matters worse, those companies are required to keep their rates at or below the rates of Citizens Property Insurance Corporation.
• Finally, few in public realize the magnitude of the chaos currently affecting the world financial markets.  Not long ago, the State of Florida had difficulty closing a CAT Fund bond deal for $625 million – in plain English that means that there were not enough investors willing to lend the money to Florida’s Hurricane Catastrophe Fund.  If the State of Florida had trouble selling out a bond issue for $625 million, what do you think is going to happen if they have to raise more?  Don’t forget – the Florida Hurricane Catastrophe Fund is on the hook for $29 Billion Dollars at the present time!

So where does all this leave you – the Florida homeowner and Florida businessman?

First if you are in Citizens Insurance you should see if you can get out by finding a private Florida homeowners insurance alternative to Citizens Insurance Florida.

The Home Insurance Buyers Guide can help you find, screen, and contact Florida homeowners insurance companies still writing new business in your area.

Use the Florida Home Insurance Buyers Guide to decide if you want to allow your Florida home insurance policy with Citizens Insurance Florida to be taken out by a thinly capitalized Florida home insurance company.

Finally, get involved with the Florida Homeowners Insurance Crisis and let your legislators know how you feel about the shaky financial condition of the Florida Homeowners Insurance Market.