Florida's Insurance Crisis

[TooFarTampa]

This year my insurance company requested a 40 percent increase on my Orange County residence homeowners policy. I am 93 feet above sea level and about 40 miles from the coast. I weathered 3 hurricanes in '04 , and luckily had no claims[because of the state mandated wind deductible]. My point before is that, as an inland owner, I have my hands full dealing with my own insurance company[USAA]. Now the state wants to bill me through my homeowners and auto policy for Citizens shortfalls. They have already twice billed me for the '04 and '05 storm season shortfalls. If we are to adapt insurance socialism here with asessments, be fair about the money grab and let the dollars come out of the state general fund. The cost would be spread out to the total population, not just homeowners. Is this unreasonable? The Citizens bailout plan leaves the company exposed to more storm claims and shifts lack of funding to inland owners.

I thought that is what they were doing with the new "reinsurance plan" that would help all companies other than State Farm (which will not participate). Wouldn't any money needed to cover huge losses come out of the general fund? Correct me if I am wrong. The Citizens problem is a problem but is a separate problem. I'm hoping that after the '05 assessments that will be end of the assessments, but maybe I am incorrect.

Bob have you gotten your renewal from USAA yet? I'm just curious. Ours comes due at the end of April for our Tampa home. Like you I read about the 40 percent increases and am bracing for it. Are you sure in Orlando you will be getting that too? USAA has been pretty fair all along. It is outrageous to me if inland homeowners are getting those huge increases as well. Totally uncalled for.

 

[Bob]

You're killing my overly dramatic posts! Help me! I'm dying! Yes, the USAA state-approved increase is between 17-18 percent[those weasels wanted 40]. Unless a sinkhole or arsonist gets me, I will forever being paying to make someone else happy. When the mortgage is payed off, self insurance may be a viable alternative. If I ever build at the beach, I know a wind policy will not be in the cards.

 

[TooFarTampa]

You're killing my overly dramatic posts! Help me! I'm dying! Yes, the USAA state-approved increase is between 17-18 percent[those weasels wanted 40]. Unless a sinkhole or arsonist gets me, I will forever being paying to make someone else happy. When the mortgage is payed off, self insurance may be a viable alternative. If I ever build at the beach, I know a wind policy will not be in the cards.

LOL

I wasn't trying to call you on anything, just wanted to know what was going on with USAA. You were right about the catastrophic fund ... it doesn't come out of general funds, but out of assessments. I just read that if we have a massive hurricane this year we could a $10-billion shortfall. How long will it take for Charlie to save $10-billion? Maybe we'll be lucky and have a couple of good years statewide.

 

[seacliffes]

This year my insurance company requested a 40 percent increase on my Orange County residence homeowners policy. I am 93 feet above sea level and about 40 miles from the coast. I weathered 3 hurricanes in '04 , and luckily had no claims[because of the state mandated wind deductible]. My point before is that, as an inland owner, I have my hands full dealing with my own insurance company[USAA]. Now the state wants to bill me through my homeowners and auto policy for Citizens shortfalls. They have already twice billed me for the '04 and '05 storm season shortfalls. If we are to adapt insurance socialism here with asessments, be fair about the money grab and let the dollars come out of the state general fund. The cost would be spread out to the total population, not just homeowners. Is this unreasonable? The Citizens bailout plan leaves the company exposed to more storm claims and shifts lack of funding to inland owners.

All of your points are good ones and I agree the subsidy should come out of general tax funds since the additional tax revenue from coastal tourism could then fund this.