[annerk]

Originally Posted by TriMT7

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.

OK, well if I take that out it's down to $190 a year I'm paying to subsidize people with billion dollar homes on the beach.

[beachmouse]

In the circle of financial life, the million dollar beach houses also tend to generate property tax revenue in excess of public services consumed so they effectively subsidize inland areas in that regard.

I'm not saying that it entirely balances out, only that it isn't as lopsided as you might think.

[annerk]

Originally Posted by beachmouse

In the circle of financial life, the million dollar beach houses also tend to generate property tax revenue in excess of public services consumed so they effectively subsidize inland areas in that regard.

I'm not saying that it entirely balances out, only that it isn't as lopsided as you might think.

I pay more in property taxes every year than many of those multi-million dollar beach homes due to the "Save Our Homes" tax laws. So yes, it's quite lopsided, thank you.

[annerk]

Why should we force them to take on a risk they don't want to? The state wants them to write here, but only using the premium caps set by the state that don't allow enough reserve funding is short-sighted. If they are too costly then people won't buy from them, end of story.

[beachmouse]

Originally Posted by annerk

I pay more in property taxes every year than many of those multi-million dollar beach homes due to the "Save Our Homes" tax laws. So yes, it's quite lopsided, thank you.

If you discover a beach house that's homesteaded and you think it's being used as a second home instead, rat them out to the local tax assessor's office. I'd bet they'd be thrilled to get to reassess it to market rate if it was improperly homesteaded, given current property tax revenue.

[annerk]

Originally Posted by beachmouse

If you discover a beach house that's homesteaded and you think it's being used as a second home instead, rat them out to the local tax assessor's office. I'd bet they'd be thrilled to get to reassess it to market rate if it was improperly homesteaded, given current property tax revenue.

I'm sure that many of them are primary residences, and frankly I ahve no way of knowing. I'm not going to stalk people.

[Mathguy]

Originally Posted by tjdmall

Let them go. California told them if they would not insure homes then they couldn't insure cars either. I think that is what Florida should do. Not sure I understand. Does that veto mean the 5% rate hike for citizens is off the table or still on?

Less competition is ALWAYS a bad thing.
You don't have to buy policies from them but you can get a quote and see where it falls.

A couple more facts about the situation.

1. Citizens is admitted to having rates that are not sufficient in the long-run. They just won't raise rates for politics. Guess how that's going to work out when a hurricane shows up?

2. Citizens doesn't have the money to pay the claims in the case of a major hurricane. Also, how exactly will they come up with 20-30billion in a couple months to pay your claim off?

3. The Florida department of insurance always has and always will set the rates for most major types of insurance. The fact that the governor tends to forget when protraying himself as a protector of the little guy. Granting rate increases then claiming "gouging", then using Citizens to "come to the rescue with inadequate rates.

4. When the next good-sized hurricane hits, the assessments you are currently paying on auto, home and most other types of insurance will probably increase by 5x and stay there for years so yes, you are already subsidizing the rates for Citizens you just don't know it yet. Basically, when citizens tanks everyone gets to pick up the shortfall.

At least the mitigation efforts (construction and prevention credits) are being pushed. Realistically, there just needs to be smarter, safer construction.