[beachmouse]

Citizen's reminds me of the saying that democracy is a horrible way of governing but it's less horrible than the other things we've tried. The state is not happy to be in the direct insurance business (would prefer to stick to reinsurance if they had to be in the process at all) and ever since they started Citizens, the goal has been for it to eventually go out of business because private insurance was widely available for all. But they're stuck with it because there are some areas of the state that private insurance companies won't touch, even if those areas have historically had little impact from hurricanes.

As for customer service, if you have to make a claim because of hurricane damage, it's going to be a horrible experience no matter who your carrier is- Citizen's, All State, State Farm all drew their share of criticism. (Nationwide seemed to have a slightly less awful reputation in the post-Ivan clean up, though still not great). There will never be enough adjusters and those adjusters will be under pressure to keep costs as low as posssible, no matter who it is they're working for.

[annerk]

Look at your next auto or home owners bill. In fine print you will see the "FHCF Emergency Assessment," "CPIC Recoupment Fee," "FHCF" fee, "FIGA" fee, etc. In my case these total up to $200 a year between my homeowners, umbrella, and auto policies. These are to support Citizen's. In other words to subsidize their policyholders who are paying below market rates.

[annerk]

Originally Posted by beachmouse

Citizen's reminds me of the saying that democracy is a horrible way of governing but it's less horrible than the other things we've tried. The state is not happy to be in the direct insurance business (would prefer to stick to reinsurance if they had to be in the process at all) and ever since they started Citizens, the goal has been for it to eventually go out of business because private insurance was widely available for all. But they're stuck with it because there are some areas of the state that private insurance companies won't touch, even if those areas have historically had little impact from hurricanes.

As for customer service, if you have to make a claim because of hurricane damage, it's going to be a horrible experience no matter who your carrier is- Citizen's, All State, State Farm all drew their share of criticism. (Nationwide seemed to have a slightly less awful reputation in the post-Ivan clean up, though still not great). There will never be enough adjusters and those adjusters will be under pressure to keep costs as low as posssible, no matter who it is they're working for.

Chubb paid all claims fairly and without any haggling. That's who I'm insured with. They are more expensive than Allstate, State Farm, etc., but you get what you pay for.

[stars99]

Originally Posted by faithfulFrank

I did not know others were subsidizing Citizens.........when I bought my home in Florida 2 years ago, I first went to State Farm. They told me they could not write me because I was not already a state farm policy holder.

I had state farm for years up here in NY, but a few years ago switched to Allstate. The state farm rep told me that I should get some policy from state farm again just in case they opened things back up. I was also told that my roof had to be 5 years old or less to get coverage. She recommended this other great company called "Citizens". She said that is what she had and that it was great and I should take it.

I ended up going to the local Allstate rep, who told me that even though I had all my NY stuff with Allstate, they could not give me an allstate HO policy. They put me with Universal Insurance holdings of North America.

My rates went down last year, and I've been happy with them. After hearing all this stuff about citizens, I think I'm glad I did not go with them. My rates are still way higher then my HOI in NY state, but at the time it was difficult even to get HOI in Florida. Now, it seems to be easier.

Frank

On your Florida car insurance bill there is some charge called "Florida Hurricane Relief fund", I think, that's what Annerk is talking about. It's the same idea that some states use to spread risks (and costs) for car insurance to the entire state, because they have on or two metro areas that have really bad insurance fraud or car theft. So everyone ends up subsidizing those areas.

It's not really fair but if they didn't do it it's possible that it would be come completely impossible for the coastal people to insure if they didn't do this, which would be worse for the state in the long run than the subsidies.

[TXRyan23]

Originally Posted by OrlandoRE_Miracle

It's not really fair but if they didn't do it it's possible that it would be come completely impossible for the coastal people to insure if they didn't do this, which would be worse for the state in the long run than the subsidies.

Usually when you over tax people they get mad and end up leaving.

IMO, It'll be great for the state in terms of keeping people on the coasts. However, most of the people living in the middle will soon go somewhere else and there will be no one left to pay.

[stars99]

Originally Posted by TNRyan23

Usually when you over tax people they get mad and end up leaving.

IMO, It'll be great for the state in terms of keeping people on the coasts. However, most of the people living in the middle will soon go somewhere else and there will be no one left to pay.

Well, if they dropped the Citizens subsidies and people in some of the coastal areas just starting leaving the state because they couldn't afford the insurance, the state would lose property tax (and other) revenue and they might end up dinging the inland people to make up for it. So it might cost us inlanders just as much or more than subsidizing.

The hurricane risk is real, there's no pain free way to get around it, IMO, unfortunately, unless we luck out and we don't have another hurricane here for twenty years.

[**NoodLes**]

Good, the sooner SF gets out the better. They overcharge and are not better than anyone else, maybe ppl will wakeup and realize they've been paying WAY too much for all these years. BYE SF!! We won't miss you, go pillage another state already!!

[TriMT7]

Originally Posted by annerk

Look at your next auto or home owners bill. In fine print you will see the "FHCF Emergency Assessment," "CPIC Recoupment Fee," "FHCF" fee, "FIGA" fee, etc. In my case these total up to $200 a year between my homeowners, umbrella, and auto policies. These are to support Citizen's. In other words to subsidize their policyholders who are paying below market rates.

FIGA is not the same thing as Citizens. FIGA is the Florida Insurance Guarantee Association. Every state has a version. It's job is to take over and pay claims when an insurance company (of any kind - auto, home, etc) goes out of business.

[ACTS Mom]

Originally Posted by faithfulFrank

I did not know others were subsidizing Citizens.........when I bought my home in Florida 2 years ago, I first went to State Farm. They told me they could not write me because I was not already a state farm policy holder.

I had state farm for years up here in NY, but a few years ago switched to Allstate. The state farm rep told me that I should get some policy from state farm again just in case they opened things back up. I was also told that my roof had to be 5 years old or less to get coverage. She recommended this other great company called "Citizens". She said that is what she had and that it was great and I should take it.

I ended up going to the local Allstate rep, who told me that even though I had all my NY stuff with Allstate, they could not give me an allstate HO policy. They put me with Universal Insurance holdings of North America.

My rates went down last year, and I've been happy with them. After hearing all this stuff about citizens, I think I'm glad I did not go with them. My rates are still way higher then my HOI in NY state, but at the time it was difficult even to get HOI in Florida. Now, it seems to be easier.

Frank

Frank, your home in Lake County is not far from me and we're not considered as a high risk area. You might want to check around for other insurances if yours is high...at least get some comparison prices. I imagine it could be higher since you're not there full time.

[ACTS Mom]

Originally Posted by OrlandoRE_Miracle

On your Florida car insurance bill there is some charge called "Florida Hurricane Relief fund", I think, that's what Annerk is talking about. It's the same idea that some states use to spread risks (and costs) for car insurance to the entire state, because they have on or two metro areas that have really bad insurance fraud or car theft. So everyone ends up subsidizing those areas.

It's not really fair but if they didn't do it it's possible that it would be come completely impossible for the coastal people to insure if they didn't do this, which would be worse for the state in the long run than the subsidies.

We have a subsidy cost for Citizens on our Homeowner's Ins. And even though our vehicle insurance is with an out of state company, we pay a Florida Hurricane Catastrophe Fund Emergency Assessment.

And as Annerk says, we subsidize those who have beach homes...they should at least let us use their beach!