Ross: Citizens is an addict

Republican Rep. Dennis Ross was trying to explain the logic to Democratic Rep. Priscilla Taylor as to why it's a good idea to allow Citizens Property Insurance Corp. to insure homes worth as much as $2 million, up from $1 million.

Ross: "This is akin to somebody who has been addicted to drugs and now must go through a methadone program."

"Is this the best thing to do in a vacuum? No...but in order to maintain a market, we’ve got to do this incrementally.”

Comments

I don't care if they insure the rich, just do an industry-independant government sponsored risk study and then charge according to the true risk. For example: My same home, but located right on the water instead of inland, should probably be paying 10X what I do. A home worth 10X mine, located on the water, should pay 100X. I'll bet the insurance bills for 99% of us would go way down. No more subsidizing fatcat coastal dwellers by the insurance industry OR the legislature. That's the real problem. Make them pay up or get off the beach.

["Your Typical White Person"]

Anywhere in Pinellas county has high risks from hurricanes not just costal areas.

Remember Charlie hitting Orlando hard.

Then let the d*mn MULTI-MILLIONAIRES WHO OWN THESE BEACH FRONT VACATION HOMES PAY FOR THEIR OWN D*MN METHADONE TREATMENT!!!!!!!!!!!

[Ray]

The Rich never have a problem being supplemented by the poor & middle class.

1.)Independent risk study.
2.)Set insurance rates accordingly.

No subsidies for the coastal dwellers.

Problem Solved!

8:37, correct in theory, but last time we told people what this would cost we got a panicked special session and the turd called HB1A, which explicitly subsidized those same million-dollar peasants with their golden pitchforks.

Politicians are addicted to rate freezes... what does this do... extend 2006 rates until the beginning of 2010... and they are taking $250,000,000 (that is $250 million) in surplus for a start-up program... but then goes on to say that rates in the private sector need to be adequate so insurance companies will write the policies and have surplus to pay claims...

What they did was simply place on the backs of all Floridians their desire not to hit Citizen policy holders with a premium increase, pandered to industry lobbyists who will make a killing off the new insurance companies, and pretty much guaranteed that if a storm hits, everyone will be assessed for any shortfalls...

Unbelievable!

[Buzzard]

This was the reason for Citizens in the first place. After the first big hurricane hit florida, Bob Graham said we needed to take steps to prevent building in areas highly susceptible to hurricane damage. We ignored him. The insurance companies eventually agreed with him and stopped writing policies on those homes. Citizens was created as a way to provide taxpayer-backed insurance for homes that are in extraordinarily risky locations. Many of them $2 million homes...and up.

Citizens shouldn't insure any more new homes. A Charley-like storm comes again and the damn corporation will be wiped out.

Its not the new homes Citizens need to worry about... it is the mobile homes and homes that are not built to current code...

Nope 9:58 - it is the multi-million dollar homes and condos of the rich built on beaches that I as a taxpayer am underwriting!!!!! Every policy I have - car, home, health has a Citizens Surcharge so these Rich people can have an ocean front view while my property insurance premium goes UP, UP, UP!!! And I can't go bare because, as many people do, I have a mortgage. Fifteen years in my home with NEVER a claim - my premiums have more than doubled in the past 3 years.

If the $2m homes would pay Citizen's rates that are actuarily charged to the risk - then it's not a bad idea because then it might better fill the Citizen's coffers.

1:50 - there are no assessments on auto and health...

3:56 - if legislators would not have frozen rates since 2006...

4:01. Not on auto, yet.

However HB1A allows citizens, if insolvent or otherwise necessary, to surcharge every tpye of policy except Workers Comp, Crop, Flood and Med Mal.

This can happen twice. Tiers 4 & 5 of the assessments would effect policyholders for many, many years.

Citizens is a timebomb. Freezing the rates is not sound business!

(But once again, why pay now what someone else will be forced to pay later!)