Taxes Down, Insurance Up

As the governor goes around today touting the property tax package the Legislature passed yesterday that promises to save homeowners in property taxes, insurance regulators just broke the bad news that homeowners are going to have to pay up a bit more for the bad hurricane season of 2004-2005, which resulted in Poe insurance companies going belly up.

The Office of Insurance Regulation just announced that they signed off on another one-time insurance assessment of 2 percent on about all liability premium, which was requested by the Florida Insurance Guarantee Association to pay off outstanding debt from Poe's insolvency. The fee impacts just about anyone who has an insurance liability policy, ranging from homeowners and auto to medical malpractice and aircraft, OIR said. Read the letter.

FIGA had assessed policies last year for Poe's insolvency but still remains $300 million short, mostly Hurricane Wilma claims. In some ways, the new assessment could be seen as a decrease compared to this past year's assessments. FIGA passed two separate 2 percent assessments on premium resulting in about $400 million to pay Poe claims.

This new assessment will result in about $20 on every $1,000 of premium paid. The way it works is that the insurers pay the assessment up front next month and will recoup the fee from policy owners.

The timing will no doubt be tough for some homeowners to take, politically, given that there have been no hurricanes for the past two years and they're still suffering from high taxes and insurance prices.

Comments

http://www.newsweek.com/id/41889
When asked by NEWSWEEK if he has done baptisms for the dead—in which Mormons find the names of dead people of all faiths and baptize them, as an LDS spokesperson says, to "open the door" to the highest heaven—he looked slightly startled and answered, "I have in my life, but I haven't recently." The awareness of how odd this will sound to many Americans is what makes Romney hesitant to elaborate on the Mormon question.

http://archives.cnn.com/2002/US/West/12/10/baptizing.the.dead.ap/

"Also among those baptized posthumously by the church, according to Radkey's research: Ghengis Khan, Joan of Arc, Adolf Hitler, Josef Stalin and Buddha"

Charlie rents. He don't care.

The rest of the bums don't have the b*lls to take on the Democrats on this issue. They rolled over and played dead last night.

Florida is pitiful.

This is all Jeb Bush's fault. He created this mess. It did not all of a sudden materialize after Charlie's first day on the job.

Shame on you Jeb Bush.

[Will]

We already had $50 in assessments on this year's insurance bill, 5%. So if 2% is in addition to that, then its an increase. But if they approve the assessments yearly, then its a 3% drop.

Why the hell should we have to pay for former legislator Poe's companies failures?

He bankrupted that insurance co & just started a new one. I want in on this racket. If no hurricanes, I make out like a bandit. If hurricanes hit, I bankrupt the company & move on to a new one.

This is insane. FL Insurance Commissioner needs to "raid" his company for documents.

Don't blame Jeb for your incompetance

This is insane. I cannot fathom why the rest of the state should be forced at gunpoint to pay for this company's failure.

This is absurd and I wish the people's governor would stand up for the people and find another way of dealing with these type of problems than by continuing to force taxpayers and property owners to keep paying "assessments" every year when we get our insurance bills.

I don't understand this assessment. I can't afford property insurance for my commercial building, and opted to purchase liability coverage only. Yet, my liability insurance policy is going to increase because of an insolvent property insurance company?

What! I received no insurance or tax relief (as promised)… and now my insurance is going even higher?

But I really thought things would be different this time… Buahahahahahahahahaaaaaa… whooooooo, you can’t make this stuff up… hahahahahahahaaaaaa… but Chuck promised he was “The People’s” governor… hahahahahahahahaaaaaaa… help me Marco, help meeeee… Hahahahahaaaaaaa… what, Marco left too?… Buahahahahahaaaaaaa… Whoooooo, that’s rich… hahahahahaaaaaaa………

How appropriate that Poe going belly up places a spotlight on the truth: our insurance premiums are going up, not down. My favorite quote from Edgar Allan Poe is: “The nose of a mob is its imagination. By this, at any time, it can be quietly led.” My favorite quote from Governor Crist, in turn, is: “You need insurance relief, and we know it and we feel it; don’t believe your rates aren’t going down as much as you would like. They are. I guarantee it!” Looks like Poe was correct.

I know someone that lives right on the Gulf and their insurance only costs as much as a similar home 5 miles inland.

Since the replacement costs would be about the same, does this mean that the risk is equal as well? How can that be???

Let me tell you how it can be - because the rest of us are subsidizing all those wealthy homes and businesses in the flood zone. That's why you're not going to get any relief until we see the Government bite the bullet and start charging them rates proportional to actual risk.

Is this a joke? Where is CC? I thought the "People's Governor" was supposed to save us from this nonsense?

I know an idiot who thinks that homes on the Gulf are built to the same standards as a rat trap five miles inland. I also know an idiot who thinks that replacement costs would be the same. Furthermore I know an idiot who thinks that replacement costs equate to risks. I also know an imbecile who thinks that those on the coast are subsidizing those inland.

THE NEXT TIME A HURRICAN STRIKES, MORON, TAKE A LOOK AT WHERE THE DAMAGE IS. ITS ALL INLAND YOU FOOL. THE STRUCTURES ON THE COAST ARE BUILT LIKE BRICK SH*THOUSES. THOSE INLAND ARE BUILT WITH CARDBOARD.

THE TRUE TEST IS THE LOCATION OF THE BLUE TARPS.

3:16pm, get real

Both your houses are in hurricane zones.
Even Orlando in the middle of FL is not safe from hurricanes.

3:49… I know an idiot who forgot that insurance companies pocketed – and poorly invested – billions and billions in premiums for decades before 2004… and now want us to pay higher premiums to cover “their” losses.

I also know an idiot who bought into the “we’re all out of money” spin that the insurance industry has been spewing… while contributing millions into campaigns all over the state to assure that nothing of any substance would actually get done… and it worked.

I also know an idiot who should be trying to sell/con insurance policies to save his job, rather than posting on the Times blog…

… and that “IDIOT”… would be YOU!

Hey 3:49 Ever here of storm surge. I do not care how well you think those nice houses are built with all of that safety glass etc. I have a florida adjusters license so don't kid your self. We get hit with a 4 or 5 in Pinellas and the intercoastal homes when rebuit will be gulf front.
How do you think John's Pass was made?

Guy getting screwed on high ground

Poe wasnt a well run company, but they did warn the OIR that if they didnt get adequate rate increases, this was a possibility. Of course their rate increases were denied - and this became a reality. Not to say they didnt mismanage and they werent incompetent. But the OIR's policy of suppressing rates certainly played a large part in this.

Bottom line: If you're against an increase in insurance rates… you must want the terrorists to win in Iraq!

Most bloggers are probably too young to remember the past sessions on medical malpractice, and how getting a handle on those insurance costs would mean more doctors and lower costs.
That did not happen EITHER.
It seems the Repub-led legislature is really trapped between the principles of less inteferance with private business, and the voters' wishes to be protected from these skyrocketing costs.
But none of this is working, and we are all getting what you do with that tool known as screwdriver.

412 Flattery will get you nowhere.

I know an idiot who thinks that there is a giant conspiracy. I know an idiot who does not do his homework and educates himself by reading blogs.

I know an idiot who does not understand that the stupid state permits Florida only subs.

I know an idiot who pretty much knows nothing about nothing.

418 You better go back to adjuster school. Storm surge is Federal Flood Insurance, not Florida windstorm.

Glad you aren't going to be doing any adjustments for me.

5:10 Apparently you are too young too. Your analysis is deeply flawed and superficial

For the posters that keep blaming this insurance mess on Bush:
It was Sen. Bill Nelson (Democrat), who while insurance commissioner allowed the insurance companies to have Florida only pup corporations. That is when the losses stopped being spread to the National companies who continue to rake in huge profits.

[Adam Smith]

Whoever is repeatedly spamming the blog with the Newsweek/Mormon comment please knock it off. It's neither effective nor welcome, but we'd prefer not to block your comments. Thanks.

[Adam Smith]

Whoever is repeatedly spamming the blog with the Newsweek/Mormon comment please knock it off. It's neither effective nor welcome, but we'd prefer not to block your comments. Thanks.

Oh my God! Don't you insurance agents and insurance lobbyist ever quit???

My insurance is down. I increased my deductibles like everyone else. Now how much is your liability? Decrease the payments you snakes! Your exposure is half of what it used to be. The lowest of life is the insurance industry, and everyone knows it so quit pretending you are the people of Florida writing.

Woohooo, insurance for two cars, a home, a boat and a motorcycle... glad to help all you out with paying my share.

Hey 3:49 Blue Tarps are the homes that survived - you can't put one on a brand new sandbar.

I've never seen so many factually incorrect statements in one place in my life. Briefly:

1. Exposure is way up, not way down. In fact, it has doubled in just the past seven years. (Source: OIR's Quarterly Supplemental Reports filed by all insurers.)

2. Rates are currently too low for the risk in coastal areas. Citizens rates are suppressed statewide until 2009 (Source: House Bill 1A, 2007), and private insurers' rates generally subsidize coastal areas through capped territory factors (Source: any one of dozens of rate filings, correspondence regarding OIR's requested modifications).

3. Poe failed because it could not afford reinsurance for the 2006 season, because its rates were too low and it had not retained enough premium from prior storm-free years. (Source: DFS liquidation documents). Further, it steered roughly 60-70% of every premium dollar into "services" companies controlled by the same entity, so that the minimum amount of premium would be retained in the regulated insurer (and subject to payout in storms). Don't like this business model? It's the same one used by all Florida-only property companies. You know, the ones touted as the consumer-friendly, cheap companies by the People's Governor.

4. Reform which reduced core claims costs did work in med mal, the rates are going down, not up (Source: FPIC rate filing 2007). The same reforms in property will require wind mitigation efforts which are fiercely resisted by homebuilder lobbies and consumers who don't want to spend the money when pulling a permit for other work.

5. Storm surge is technically flood and excluded from homeowners policies, but in practice most severe claims are at least partially paid as wind damage, and when they are not insurers get sued six ways to Sunday (Source: Mierzwa case documents, State Farm settlement in MS after Katrina) and usually settle for an amount beyond what the policy (and its rates) strictly call for.

You can expect Citizens assessments until 2016, Cat Fund assessments until 2012, and FIGA assessments at least thru next year and probably 2009 due to just one hurricane (Wilma). Still want that "cheap" property insurance for everyone on the coast? Is it still all the greedy insurers' fault?