Wind Insurance and Citizens

For two months we have been asking for an update on wind insurance, which is now offered only through Citizens in Florida. Our insurance agent failed to mail the package out and we received the info only after asking for it repeatedly and via an e-mail. Turned out that the premium was due today. The real shocker, however, was finding out that the premiums have gone up by 250 percent. For those of you who haven't received paperwork on this, be aware and contact your insurance carrier to confirm that you have coverage.

The interesting thing in the cover letter is that the premiums are based not only on payment of claims associated with last summer's hurricanes, but are based on so-called predictions for this summer and next! So we have insurance companies capitalizing on predictions that swing both ways, justifying astronomical increases in our premiums. What next in our fear based society?

Donna, they have been doing this with auto insurance for years. They collect the stats on which drivers are most likely to be involved in a wreck and they charge accordingly. I have been written only two speeding tickets and I have been in only two accidents in my entire life, in both cases, someone backed their vehicles into mine, yet I was charged excessively high rates between the age of 16 and 25. IMO, this is business as usual for them, but with a slightly different venue.

Donna, they have been doing this with auto insurance for years. They collect the stats on which drivers are most likely to be involved in a wreck and they charge accordingly. I have been written only two speeding tickets and I have been in only two accidents in my entire life, in both cases, someone backed their vehicles into mine, yet I was charged excessively high rates between the age of 16 and 25. IMO, this is business as usual for them, but with a slightly different venue.

insurance company done hired mama cleo to predict the 'caines! ja-all be a-righ' now! more glad i moved up here every day.

For two months we have been asking for an update on wind insurance, which is now offered only through Citizens in Florida. Our insurance agent failed to mail the package out and we received the info only after asking for it repeatedly and via an e-mail. Turned out that the premium was due today. The real shocker, however, was finding out that the premiums have gone up by 250 percent. For those of you who haven't received paperwork on this, be aware and contact your insurance carrier to confirm that you have coverage.

The interesting thing in the cover letter is that the premiums are based not only on payment of claims associated with last summer's hurricanes, but are based on so-called predictions for this summer and next! So we have insurance companies capitalizing on predictions that swing both ways, justifying astronomical increases in our premiums. What next in our fear based society?

Donna,

We found an insurance company out of Pennsacola that has taken over our insurance and we have the same coverage as before (including wind and hurrican) for about $150.00 more. Her name is Kelly Ballard and she is with Kite Insurance Agency. The number is 850-434-8123. Her email is kelly@kiteinsuranceagency.com. She has been great.

Here's something almost as annoying. Our premium went up 100 percent when we renewed with Citizens in July. This we expected. But about a month ago we got a letter in the mail saying our wind policy had been transferred to a new company about two weeks prior. Name is Florida Peninsula Insurance.

I was excited! I thought that since we were no longer with Citizens, we would get a break on our rates. So I called our agent.

No, she said. It's the same price.

But doesn't state law require that Citizens charge more than any other company?

Well, she said, this new company is a spinoff of Citizens. There is a lottery to get in.

So what's the benefit? I asked. And how can a non-Citizens company charge
the same as Citizens and still be within the law?

She had no answers for me. I asked and asked and asked and I just bet she didn't even know. My guess is that the only benefit is to Citizens somehow. Anyone else understand this Florida Peninsula deal? It happened right before the holidays and I forgot about it. Gotta investigate. Grrr. Lawmakers. Grrr.

Thanks for this info, Wastin' Away. We may look into it. It is my understanding that there are no insurance companies offering wind policies in Florida now, only Citizens. Previously, there were only two left that offered it. But when Citizens went to the State and convinced them to put everyone into the pool, those two also backed off, leaving Citizens in a monopoly. I was told that we had no options. Of course, anyone with a mortgage on their home is required to carry this insurance. And even without a mortgage, who is going "bare bones" on hurricane insurance? I expected an increase, even a sizable one. But not 250 percent. After asking some questions of those-in-the-know, I am advised that insurance companies work with prediction factors and demographics to predict where their future costs are likely to be required. This makes sense, I suppose. But does anyone think there will be a rollback in these premiums if we have no hurricanes making landfall in the 2006 season? I do understand that they have to cover losses and build up a war chest for eventualities. What I was most annoyed about, frankly was our insurance company dropping the ball on getting this critical info to us in a timely manner and then being so coy about how large the increase was. Not nice to have a huge cash hit between Christmas and quarterly tax payments, even with one's own war chest at hand.

We also got switched to Florida Peninsula Insurance on our wind insurance on one of the units from Citizens. From what I understand from somewhere(I believe it was in an article that someone posted here from some newspaper in FL) that some of Citizens executives are starting up other companies to take some of Citizens business. Ours went up 300% this year. Ouch!!!

I've been keeping an eye on the Florida Insurance situation so what's happening with rate increases is no surprise. I would, however, be surprised if anyone gets any straight answers on their policies (since the companies are pretty much making it up as they go along).

I do know that the chatter on insurance company stocks is positive since they pretty much have a blank check and need only to fill in their earnings.

Here's a couple links:

Citizen's Spinoffs

Insurance Journal 2006
Interesting exert from article above by Mr Miller, Exec VP of Florida Insurance Council: "... Miller said, "policymakers are considering charging more for vacation homes and less for primary residences and providing relief to low income Floridians having trouble paying their insurance premiums, as we provide relief today to help some people pay electricity and telephone bills.

Florida Insurance Changes (Pre-Katrina & Wilma!)

Thanks for the info Shelly

We might not be getting anwsers - but we still have to keep asking the questions.

Thanks for this info, Wastin' Away. We may look into it. It is my understanding that there are no insurance companies offering wind policies in Florida now, only Citizens. Previously, there were only two left that offered it. But when Citizens went to the State and convinced them to put everyone into the pool, those two also backed off, leaving Citizens in a monopoly. I was told that we had no options. Of course, anyone with a mortgage on their home is required to carry this insurance. And even without a mortgage, who is going "bare bones" on hurricane insurance? I expected an increase, even a sizable one. But not 250 percent. After asking some questions of those-in-the-know, I am advised that insurance companies work with prediction factors and demographics to predict where their future costs are likely to be required. This makes sense, I suppose. But does anyone think there will be a rollback in these premiums if we have no hurricanes making landfall in the 2006 season? I do understand that they have to cover losses and build up a war chest for eventualities. What I was most annoyed about, frankly was our insurance company dropping the ball on getting this critical info to us in a timely manner and then being so coy about how large the increase was. Not nice to have a huge cash hit between Christmas and quarterly tax payments, even with one's own war chest at hand.

Donna,

Same thing happened to us. We received notice from our previous insurance company, in December, that we would have to take Citizens for our wind policy and were shocked at the increase, since we have had no claims and not in a flood zone. Kelly Ballard is a relative to whom my husband does his company insurance with. He referred us to her and she has offered us everything we had with the previous insurance company and around 150-200 more than we paid last year. You may want to give her a call and get some answers, it could be that your insurance company doesn't want to take the time to investigate on your behalf your options.

Hi there. My name is Chantelle and I work for Kite Insurance Agency. Our agency has received quite a few calls from homeowners referencing this site when asked how they heard about our agency. I believe I have actually talked to a few of the posters here. I would just like to say that our agency has several markets that we can place homeowners and rental dwelling policies with. Please feel free to give us a call at 888-636-9772. Thanks and have a great weekend!

I called this agency and they responded with a written quote via e-mail in less than 20 minutes. I was very impressed. The hazard insuance quote was half what we are currently paying and the coverage is better. The wind quote, however, was almost twice the amount we are currently paying through Citizens. We're in the process of deciding whether we want to change to this agency, since our agent with the other company is basically out of the game (disability). We are not at all happy with how the company is picking up his clilents and keeping us informed. Also unhappy about being misinformed that there was no option for wind but for Citizens. I think many of these companies are in a meltdown mode as a result of last summer.

This may be a stupid question, but I though I was up on the insurance situation since I live in the area.

I am insured by Nationwide and do not recall receiving anything about discontinuing wind coverage on my home. In the last few years, the deductible has gone up to a percent of the value of your home, but no mention of not being covered.

Does anyone have Nationwide? If so, are you a resident? How far from the water is your home?

Thanks. I will call my agent first thing Monday... That is if they will answer the phone.....

This may be a stupid question, but I though I was up on the insurance situation since I live in the area.

I am insured by Nationwide and do not recall receiving anything about discontinuing wind coverage on my home. ....

There was a piece in the Sun Herald last week about Allstate and Nationwide starting to drop policies down in South Florida:

Sun Herald Article Jan 31, 2006

I read the article, thanks. But, that is regarding canceling the entire policy. If I understood from the first poster, only the wind portion is what is being canceled?????

Please clarify. Plus are the second home policies or primary home policies?

Thanks.