The state-created insurance company called Citizen’s Property Insurance has hit one million insurance policies, and experts say that’s not good news for homeowners.
What do you want to know
- The Florida Chamber of Commerce published an article detailing how last year seven insurance companies were forced to close their doors
- Citizen’s Property Insurance reaches one million insurance policies
- BELOW: What does this mean for owners?
The company is considered by many to be the insurer of last resort.
The Florida Chamber of Commerce published an article on Friday detailing how seven insurance companies were forced to close their doors last year, with others canceling or not writing new policies.
They say the reason behind this is that all businesses suffer significant losses as a result of property insurance lawsuits against them.
What does this mean for you?
If there is a hurricane and citizens’ property insurance depletes their reserves and cannot pay insurance claims, all of their one million policyholders will see one-time payouts of up to 45%.
And for all Floridians, that could mean up to a 30% increase in your home and auto insurance.
In May, the governor called a special session to try to address bad behavior related to some of these insurance company-related court cases.
Some changes went into effect immediately after this special session, but for some issues people won’t notice any changes for several months.
The Florida Chamber encourages people to attend the 15th Annual State Insurance Summit in December with state leaders, insurance executives and stakeholders, where they are expected to discuss possible solutions.