does anyone have to use Citizens insurance in Cape Coral? (Miami: homeowners insurance, condo)

[rikoshaprl]

My understanding is that Citizens is the insurer of last resort if you can't get private insurance and it is funded by tax dollars. Is there anyone in Cape Coral that can not get private homeowners insurance?

[Izmack]

Originally Posted by rikoshaprl

My understanding is that Citizens is the insurer of last resort if you can't get private insurance and it is funded by tax dollars. Is there anyone in Cape Coral that can not get private homeowners insurance?

I think if you are in a certain zone you must get Citizen's, as no other insurer will cover you. Not sure, though. Regardless, I don't think it matters, as all Floridians have to pay into the Citizen's fund. Just found this:

Bill allowing hefty Citizens insurance rate hikes clears first panel


By Julie Patel March 29, 2011 04:25 PM


A bill that would raise Citizens Property Insurance policyholders' premiums by up to 25 percent a year and make many policyholders ineligible for coverage was approved by a close 6 to 4 vote in the Senate's insurance committee today.


Sen. Alan Hays, R-Umatilla, said his bill, SB 1714 is aimed to shrink state-backed Citizens, Florida’s largest residential insurance provider with 1.3 million policies, and even the playing for private insurers. The bill will go to one or two committees before it can be taken up for a full Senate vote.
The bill, and its House companion, HB 1243, would also bar policies for homeowners who find coverage elsewhere for a price that's up to 25 percent more; require Citizens to drop policies covering homes that cost at least $500,000; prevent Citizens policyholders from hiring public insurance adjusters to represent them in claims disputes; and require Citizens to hire an outside consultant to analyze whether to have more of its work outsourced.


Gwen Margolis, D-Miami, said people who will be no longer be eligible for coverage with Citizens will find it even harder to sell their homes, which could worsen economic problems in the state.


"At what point do we recognize that there are people out there that are struggling that can no longer afford [it]?" said Sen. Mike Fasano, R-New Port Richey, who led the charge against the bill. He said Floridians who elected Republicans do not expect legislators to raise their taxes, rates or premiums. “Every time I turn around we see another rate increase...Give these people some relief.”


Hays said his bill would help reduce fees charged to the 85 percent of Florida policyholders who don't have Citizens but have to help offset the insurer's deficits from the 2005 hurricanes. "We call it an assessment but that's just a big long word for tax," he said.


J.D. Alexander, R-Lake Wales, said auto insurance policyholders would also be subject to paying fees. He said a constituent told him, "I can't even afford a house. Why do I have to pay this assessment?"


South Florida lawmakers that voted against the bill are Sens. Margolis, Chris Smith, D-Fort Lauderdale, and Eleanor Sobel, D-Hollywood. Sen. Joe Negron, R-Stuart, voted for it, Sen. Ellyn Bogdanoff, R-Fort Lauderdale, was not at the meeting.

[rikoshaprl]

Is it just for homes on the beach?

[Izmack]

Originally Posted by rikoshaprl

Is it just for homes on the beach?

I found some info, but it's not easy:

The Citizens High Risk Account operates in portions of the following counties: Bay, Brevard, Broward, Charlotte, Collier, Dade, Duval, Escambia, Flagler, Franklin, Gulf, Hernando, Indian River, Lee, Levy, Manatee, Monroe, Nassau, Okaloosa, Palm Beach, Pasco, Pinellas, St. Johns, St. Lucie, Santa Rosa, Sarasota, Volusia, Wakulla and Walton. The High Risk Account operates in most of coastal Florida, with the notable exception of Hillsborough County, where private market windstorm insurance has remained available, largely because of protection afforded the region by huge Tampa Bay.

From capecoral.net:

The low- and moderate-risk zones are represented on the maps by the letter “X” or an “X” that is shaded. The inland high-risk zones will be labeled with designations such as “A”, “AE”, “AO” or “AH”, and coastal high-risk zones that have additional risk from storm surge will be labeled “V” or “VE”.

To give some idea, the Miami-specific high risk area is:

areas on barrier islands, near the mainland coasts and, in Dade, Broward and Palm Beach counties, from I-95/U.S. 1 to the Atlantic Ocean.

[gandalfthegrae]

Read this note.
Citizens Insurance - Wikipedia, the free encyclopedia

Here is an article on the new legislature:
House looks at fix for Citizens Insurance | The News-Press | news-press.com

I currently have Citizens on my condo next to the river. It was available, competitive and through a private agent who seemed to have integrity. Being on or near the water comes with some limitations as to insurance availability. Fortunately I haven't had to test it.

[gandalfthegrae]

Here is the Lee County Flood Zone MAp
Map of Lee County Flood Zones


and an FAQ from the Cape Coral web site

http://www.capecoral.net/Portals/0/d..._CapeCoral.pdf

[rikoshaprl]

Originally Posted by gandalfthegrae

Here is an article on the new legislature:
House looks at fix for Citizens Insurance | The News-Press | news-press.com

So this legislation is raising capital because the not for profit government insurance does not have enough funding to pay for claims should a disaster hit. I would rather see the folks that are getting the benefit of living right near the gulf or river pay a little more than have the taxpayers who live inland have to pay more.

[hiknapster]

Originally Posted by rikoshaprl

So this legislation is raising capital because the not for profit government insurance does not have enough funding to pay for claims should a disaster hit. I would rather see the folks that are getting the benefit of living right near the gulf or river pay a little more than have the taxpayers who live inland have to pay more.

That seems fair. I wonder what the specifics are. Which residents. Who determines.

[Izmack]

Originally Posted by rikoshaprl

So this legislation is raising capital because the not for profit government insurance does not have enough funding to pay for claims should a disaster hit. I would rather see the folks that are getting the benefit of living right near the gulf or river pay a little more than have the taxpayers who live inland have to pay more.

Riko, in reading that map, the "little" increase - doubling the insurance after 4 years - covers half of Cape Coral!

[rikoshaprl]

Originally Posted by Izmack

Riko, in reading that map, the "little" increase - doubling the insurance after 4 years - covers half of Cape Coral!

The legislation says they (the government) can raise rates up to 25% per year. It doesn't mean it will be that much, or every year. Right now the government can raise the rate up to 10% per year. But evidently that is not enough to cover the cost to fund a major disaster.