PUBLISHED 6:26 PM ET AUG. 12, 2022
The state-created insurance company called Citizen’s Property Insurance has reached 1 million insurance policies, and experts say that’s not good news for homeowners.
What You Need To Know
- The Florida Chamber of Commerce released an article detailing how in the last year, seven insurance companies were forced out of business
- Citizen’s Property Insurance has reached one million insurance policies
- Experts say the news could be followed by more insurance rate hikes in Florida
The company is considered by many as the insurer of last resort.
On Friday, the Florida Chamber of Commerce released an article detailing how in the last year, seven insurance companies were forced out of business, with others canceling or not writing new policies.
They say the reason behind that is because of all the companies facing significant losses from property insurance court cases that have been filed against them.
What does this mean for Florida homeowners?
If there’s a hurricane and Citizens Property Insurance runs through its reserves and can’t pay for insurance claims, all of their 1 million policy holders will see one-time payments of up to 45%.
And for all Floridians, it could mean an increase of up to 30% on home and auto insurance policies.
In May, Gov. Ron DeSantis called a special session to try and combat the bad behavior linked to some of the court cases involving insurance companies.
Some changes went into effect immediately after that special session, but for some issues people won’t notice a change for quite a few months.
The Florida Chamber of Commerce is encouraging people to attend the state’s 15th Annual Insurance Summit in December with state leaders, insurance executives and stakeholders, where possible solutions are expected to be discussed.