Add news
March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010
January 2011
February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024 April 2024 May 2024 June 2024 July 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
21
22
23
24
25
26
27
28
29
30
31
News Every Day |

Why Citizens wants to raise your insurance rates | Editorial

Why Citizens wants to raise your insurance rates | Editorial

Governor, put down the Big Mac and pay attention.

Asked about a proposed 14% rate hike in homeowners’ policies by Citizens Property Insurance Corp., Ron DeSantis responded by citing the rising cost of fast food. His family of five had just spent $50 or so at a McDonald’s, and he said inflation was everywhere.

For the 1 million-plus Citizens policyholders, insuring the roof over their head is their most pressing inflationary concern — not buying fast food — and that trail of trouble begins in Tallahassee.

The state-owned insurer of last resort, Citizens is asking state regulators to green-light an average 14% rate hike for residential property owners. If the state Office of Insurance Regulation (OIR) approves, policyholders across the state will pay hundreds of dollars more a year in premiums in 2025.

Double-digit increases

In Broward, single-family homeowners would face average increases of $727. Palm Beach County premiums would swell by $657.

Hundreds of thousands of other policyholders won’t face a Citizens bill because they are being rapidly dropped from the state-subsidized insurer’s rolls. They must scramble to find insurance elsewhere, at a higher cost.

This graph provided by Citizens Insurance shows insurance rate changes in private industry and for Citizens customers.
This graph provided by Citizens Insurance shows insurance rate changes in private industry and for Citizens customers.

Citizens’ request for a rate increase comes amid a flurry of sunny-side messaging. It posted a $746 million profit last year. In the wake of legislative reforms, the private market wants to take on Florida customers again. Eight new insurers have entered the market, and eight companies have filed for rate decreases.

But Citizens, which was created by the Legislature in 2002, is not part of that private insurance market. It’s not a true insurance company at all, and the rate hike request reflects that.

Still ‘well below market’

By law, Citizens is prohibited from competing with private insurers. But its low rates and its tax-exempt status give it competitive advantages.

“We’re not trying to jam Citizens’ customers,” Citizens CEO Tim Cerio told the Sun Sentinel Editorial Board. “But the point is, they are paying well below market. If this increase goes through that we’ve asked for, on the whole they will still be paying well below market.”

On paper, Broward policyholders could have seen an increase of less than 1%. Palm Beach County’s increase could have been 9.8%. Citizens could cut rates for its Miami-Dade County policyholders by 4% based on its anticipated losses.

But instead of a cut or smaller hike, all three counties are targeted for double-digit rate increases. Miami-Dade homeowners who might have paid a few dollars less are slated to instead pay an average $691 more.

And Citizens will likely have to keep right on asking for rate hikes. Its own actuaries projected that the insurer would have to charge higher rates than seven out of 10 private companies to meet the non-competition goal.

To borrow the governor’s golden arches analogy, think of it as McDonald’s raising prices until customers take their chances at a mall food court.

‘De-pop’ as a byword

That’s because of another paradox: One of Citizens’ built-in goals is to keep people from being served by Citizens. Shedding policies, known as depopulation, de-pop for short, or shrinking, is a byword at the insurer of last resort.

It was not designed to rescue all comers from a turbulent and costly insurance market — only the most uninsurable. But that was before climate change, which lawmakers all but turned their backs on 20 years ago, generated increasingly violent hurricanes, leaving Citizens to pick up increasingly large tabs for increasingly more Floridians.

Citizens now has about 1.2 million policies and needs to offload hundreds of thousands of them.

If approved, the rate hike is likely to help usher them out the door, even as it creates its own little inflationary spiral.

The Legislature has decreed that a customer who’s offered a policy by a private insurer that’s no more than 20% higher than what Citizens charges for coverage may be involuntarily bumped into the private market.

When Citizens’ rates rise, a private insurer can offer more expensive policies than it does now while staying below the 20% cap. That shoehorns the customer out of Citizens and into the commercial marketplace’s welcoming and more expensive arms.

It is not Citizens’ fault that it’s caught between an actuarial rock and a hard place. It is required to simultaneously insure hundreds of thousands of property owners and drop hundreds of thousands more while shoring up fiscal weaknesses and taking care to not elbow aside private insurers. That’s a Tallahassee-created problem.

But as anyone facing steeper rates can tell you, Florida’s property insurance crisis is far from over. Those being asked to open their wallets yet again deserve better than gee-things-are-tough-all-over commiseration from the governor or spoon-fed rhetoric that relief is right around the corner.

The next Cat 4 could be right around the corner, too.

The Sun Sentinel Editorial Board consists of Opinion Editor Steve Bousquet, Deputy Opinion Editor Dan Sweeney, editorial writer Martin Dyckman and Editor-in-Chief Julie Anderson. Editorials are the opinion of the Board and written by one of its members or a designee. To contact us, email at letters@sun-sentinel.com.

News Every Day

Biden's anger bleeds through as party weighs his future

Surya set to pip Hardik , emerges as dark horse for India's T20I captaincy

Bears Reportedly Played A Big Part In Giants Losing Saquon Barkley

Biden's anger bleeds through as party weighs his future

Faculty of International Journalism and Mass Communications Eurasian International University is conducting an additional intake of applicants!

Ria.city






Read also

I was strip-searched at a hellhole Dubai prison for attempting suicide after horror abuse at the hands of my husband

Report: LeBron James expected to be among bidders for Las Vegas NBA expansion franchise

LOOK: Paris landmarks that will serve as Olympic venues

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Faculty of International Journalism and Mass Communications Eurasian International University is conducting an additional intake of applicants!

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

Suspect arrested for ‘threatening to kill Trump and his VP pick JD Vance’ in Florida days after assassination attempt



Sports today


Новости тенниса
Уимблдон

Медведев в матче против Синнера на Уимблдоне проявил характер, заявил Ольховский



Спорт в России и мире
Москва

Более 7000 человек примут участие в спартакиаде «Моспром-2024»



All sports news today





Sports in Russia today

Москва

Более 7000 человек примут участие в спартакиаде «Моспром-2024»


Новости России

Game News

Двадцать пять человек за одним столом под звуки караоке – это было шедеврально!


Russian.city


Минск

Лукашенко назначил «смотрящих» за будущими президентскими выборами


Губернаторы России
Андрей Бурковский

«Бегал в костюме красноармейца по ресторану отца Андрея Бурковского» Михаил Башкатов в шоу «Вкусно с Анфисой Чеховой» на ТВ-3 рассказал о первом заработке


Дождь с грозой пройдут в ближайшие часы в столице

Письмо генеральному прокурору и отмена выборов - чем может обернуться избрание нового главы города Сочи?

Двое детей стояли в окне второго этажа дома на Святоозерской улице и просили еды

Владислав Овчинский: жители дома на Радужной улице начали переезд в новостройку по программе реновации


Лица без определенного места жительства поселились в лимузине Аллы Пугачевой

Чем заняться дома: Римская империя с Хопкинсом и новый альбом Deep Purple

Певец SHAMAN приехал на концерт у посольства США на машине «Победа»

Семьи работников заводов АО "Желдорреммаш" стали призерами федерального конкурса «Это у нас семейное»


Надаль, Шаповалов, Опелка, Томлянович сыграют на US Open по защищенному рейтингу, Осака не попала в основу

Калинская и Синнер наслаждаются отдыхом в Италии

Рублева призвали успокоиться

Уроженка Самарской области выступит на Олимпиаде в Париже



Shaman назвал выступление у посольства США ответом РФ на блокировку на YouTube

Shaman объяснил, почему выступил у посольства США в Москве

Скиппинг и танцы: как тренировки со скакалкой влияют на физическое здоровье

Декларация Человекоцентричности


На «Атомайз» состоялась первая в России цифровая секьюритизация портфеля кредитов

Заинтересовавший Владимира Путина хит семьи Рыбачевых презентовали на радиостанциях «Газпром-Медиа»

Семья сотрудника Улан-Удэнского ЛВРЗ одержала победу в федеральном конкурсе

Один из лучших джазовых вечеров в Петербурге и Москве - «Jazz под Небом»


«Надо подавать в суд»: Мария Аронова опровергла сообщения о своей госпитализации

США готовятся подавлять спутники России и Китая с помощью РЭБ — Bloomberg

Из Владимира в Москву и обратно теперь можно доехать быстрее по М-12

Певческое поле в Дубровицах благоустроят в этом году



Путин в России и мире






Персональные новости Russian.city
Анастасия Волочкова

Целовались на виду у всех: Анастасию Волочкову заметили в объятиях своего возлюбленного в Москве



News Every Day

Bears Reportedly Played A Big Part In Giants Losing Saquon Barkley




Friends of Today24

Музыкальные новости

Персональные новости