Tuesday, May 23, 2006
REGULAN TARIFAS DE SEGUROS Y SE REFLEJAN NCREMENTOS DRAMATICOS DEL COSTO DE LOS SEGUROS DE PROPIEDADES EN FLORIDA
JOSE RAUL MARRERO
WWW.JOSERULMARRERO.COM
407-436-5140
EN EL ESTADO DE LA FLORIDA SE DEBATE DESDE HACE VARIOS MESES EL AUMENTO DRAMATICO DEL SEGURO DE LAS PROPIEDADES. A CONTINUACION UNA HISTORIA APARECIDA EN UN REVISTA DE CIRCULACION GENERAL SOBRE LE TEMA DE LA REGULACION POR PARTE DE LA LEGISLATURA DEL ESTADO DE ESTABLECER ALGUNOS CONTROLES PARA QUE LAS COMPANIAS PUEDAN CUBRIR LOS DANOS Y TENER LIQUIDEZ.
TALLAHASSEE, Fla. -- May 22, 2006 -- Many homeowners insured by Citizens Property Insurance Corp., South Florida's largest property insurer, will see double-digit insurance premium increases, but the company's condominium policyholders will get a temporary reprieve.
State insurance officials on Friday approved state-backed Citizens' two-step request to raise prices for homeowners living in the company's high-risk area, which in South Florida is mainly east of Interstate 95. But officials denied one of Citizens' two requests to boost rates charged to condo policyholders.
Looking ahead, a Citizens' spokesman warned that rates will continue to climb for home and condo customers because the Florida Legislature ordered the company to charge high enough premiums to cover its losses during a major hurricane. That means next year coastal policyholders could pay double the annual premiums they pay now. "Citizens policyholders should expect additional increases going forward because of the legislation," company spokesman Justin Glover said.
For now, owners of older homes can expect an extra surcharge on top of what they're already paying for Citizens coverage. The insurer of last resort is allowed to tack on a surcharge up to 25 percent to insure single-family homes older than 50 years.
Citizens is the second-largest property insurer in the state. The company insures more than 850,000 people statewide, including about 400,000 in South Florida and the Keys.
Some Citizens homeowner policyholders already are paying the first of the two increases the insurer requested. Citizens started collecting the first increase in March, raising rates as much as 23 percent in parts of Broward and Palm Beach counties.
Citizens will start collecting the second increase in September. The statewide average effect of those rate hikes will be 12.4 percent for homeowners living west of I-95, and 25.9 percent for homeowners in Citizens' high-risk coastal areas. On Friday, county-by-county figures were not available for Citizens' second price increase, but the rates are expected to be higher in South Florida than the state average.
"Our actuarial staff has rigorously examined these rates, and I am confident the approved adjustments achieve adequate rates given the risks involved," Insurance Commissioner Kevin McCarty said in a written statement. "Citizens did not receive approval for all rate adjustments requested."
Glover said the company is still analyzing the rate adjustment it received Friday from the state Office of Insurance Regulation, but called it a "step in the right direction."
Condo owners won't have as much sticker shock as those living in single-family homes. The increase that Citizens already is collecting boosts rates no more than 7.3 percent for condo owners in high-risk areas of Broward County, and no more than 14.6 percent for condos in high-risk areas of Palm Beach County. Regulators denied a second rate increase to condo owners. Under the first increase, Citizens' condo policyholders living west of I-95 saw no change in their rates. However, Citizens policyholders -- and all Florida property owners -- are paying a 6.8 percent increase or $68 per $1,000 of annual premium because of the company's $516 million deficit after the 2004 hurricanes. In addition, the state's property owners are all paying 3.5 percent, or $35 per $1,000 of premium, toward the $1.7 billion shortfall in 2005.
Some Citizens policyholders wondered how they would be able to afford the higher rates, or why they were being targeted for such large increases.
Citizens customer Sue Muntz said her home in Fort Lauderdale is like a "little bomb shelter," with a flat-tile roof, impact-resistant windows and locks on the doors to ensure it isn't blown in by hurricane-force winds.
Muntz, 49, said she doesn't feel like her rates reflect the extra time and expense she and her husband took to protect their home.
"What gets ridiculous is when you take the time to actually secure your house ... and it doesn't seem to make any difference," Muntz said.
Joe Provenzola said he might forgo investing in his retirement to be able to pay for rising premiums.
"Maybe we have to invest less in our retirement because we have to afford insurance," said Provenzola, 44, of Lighthouse Point. "Where can you get the money from? The first thing that comes to mind is investments, retirement." He said he doesn't understand why Citizens charges so much, when he has no other options for companies to insure his home. "It's not the insurance of last resort," Provenzola said. "It's the only one for us."
GRACIAS POR VISITAR MY BLOG
JOSE RAUL MARRERO
MARRERO REAL ESTATE BROKERAGE LLC
REAL ESTATE BROKER LIC
407-436-5140
TODOS SOMOS GUERRROS DE LUZ!
407-436-5140
WWW.JOSERULMARRERO.COM
407-436-5140
EN EL ESTADO DE LA FLORIDA SE DEBATE DESDE HACE VARIOS MESES EL AUMENTO DRAMATICO DEL SEGURO DE LAS PROPIEDADES. A CONTINUACION UNA HISTORIA APARECIDA EN UN REVISTA DE CIRCULACION GENERAL SOBRE LE TEMA DE LA REGULACION POR PARTE DE LA LEGISLATURA DEL ESTADO DE ESTABLECER ALGUNOS CONTROLES PARA QUE LAS COMPANIAS PUEDAN CUBRIR LOS DANOS Y TENER LIQUIDEZ.
TALLAHASSEE, Fla. -- May 22, 2006 -- Many homeowners insured by Citizens Property Insurance Corp., South Florida's largest property insurer, will see double-digit insurance premium increases, but the company's condominium policyholders will get a temporary reprieve.
State insurance officials on Friday approved state-backed Citizens' two-step request to raise prices for homeowners living in the company's high-risk area, which in South Florida is mainly east of Interstate 95. But officials denied one of Citizens' two requests to boost rates charged to condo policyholders.
Looking ahead, a Citizens' spokesman warned that rates will continue to climb for home and condo customers because the Florida Legislature ordered the company to charge high enough premiums to cover its losses during a major hurricane. That means next year coastal policyholders could pay double the annual premiums they pay now. "Citizens policyholders should expect additional increases going forward because of the legislation," company spokesman Justin Glover said.
For now, owners of older homes can expect an extra surcharge on top of what they're already paying for Citizens coverage. The insurer of last resort is allowed to tack on a surcharge up to 25 percent to insure single-family homes older than 50 years.
Citizens is the second-largest property insurer in the state. The company insures more than 850,000 people statewide, including about 400,000 in South Florida and the Keys.
Some Citizens homeowner policyholders already are paying the first of the two increases the insurer requested. Citizens started collecting the first increase in March, raising rates as much as 23 percent in parts of Broward and Palm Beach counties.
Citizens will start collecting the second increase in September. The statewide average effect of those rate hikes will be 12.4 percent for homeowners living west of I-95, and 25.9 percent for homeowners in Citizens' high-risk coastal areas. On Friday, county-by-county figures were not available for Citizens' second price increase, but the rates are expected to be higher in South Florida than the state average.
"Our actuarial staff has rigorously examined these rates, and I am confident the approved adjustments achieve adequate rates given the risks involved," Insurance Commissioner Kevin McCarty said in a written statement. "Citizens did not receive approval for all rate adjustments requested."
Glover said the company is still analyzing the rate adjustment it received Friday from the state Office of Insurance Regulation, but called it a "step in the right direction."
Condo owners won't have as much sticker shock as those living in single-family homes. The increase that Citizens already is collecting boosts rates no more than 7.3 percent for condo owners in high-risk areas of Broward County, and no more than 14.6 percent for condos in high-risk areas of Palm Beach County. Regulators denied a second rate increase to condo owners. Under the first increase, Citizens' condo policyholders living west of I-95 saw no change in their rates. However, Citizens policyholders -- and all Florida property owners -- are paying a 6.8 percent increase or $68 per $1,000 of annual premium because of the company's $516 million deficit after the 2004 hurricanes. In addition, the state's property owners are all paying 3.5 percent, or $35 per $1,000 of premium, toward the $1.7 billion shortfall in 2005.
Some Citizens policyholders wondered how they would be able to afford the higher rates, or why they were being targeted for such large increases.
Citizens customer Sue Muntz said her home in Fort Lauderdale is like a "little bomb shelter," with a flat-tile roof, impact-resistant windows and locks on the doors to ensure it isn't blown in by hurricane-force winds.
Muntz, 49, said she doesn't feel like her rates reflect the extra time and expense she and her husband took to protect their home.
"What gets ridiculous is when you take the time to actually secure your house ... and it doesn't seem to make any difference," Muntz said.
Joe Provenzola said he might forgo investing in his retirement to be able to pay for rising premiums.
"Maybe we have to invest less in our retirement because we have to afford insurance," said Provenzola, 44, of Lighthouse Point. "Where can you get the money from? The first thing that comes to mind is investments, retirement." He said he doesn't understand why Citizens charges so much, when he has no other options for companies to insure his home. "It's not the insurance of last resort," Provenzola said. "It's the only one for us."
GRACIAS POR VISITAR MY BLOG
JOSE RAUL MARRERO
MARRERO REAL ESTATE BROKERAGE LLC
REAL ESTATE BROKER LIC
407-436-5140
TODOS SOMOS GUERRROS DE LUZ!
407-436-5140
