June 30, 2006
Florida Losing Appeal
Florida is losing its appeal as the ideal retirement destination for the elderly after repeated battering from hurricanes and tropical storms. Adding insult to injury is the fact that home owners are unable to find suitable insurance options with most of the private insurance companies closing shop, unable to hold their heads above water in the wake of hurricanes Katrina and Rita.
Home owners in the area are left with no alternative but to depend on Citizens Property Insurance Corporation, the state insurer, which, according to the law is mandated to charge more in order to stay noncompetitive. While Citizens also went into the red, it was bailed out by state surpluses from the Legislature. The insurer, which was the second-largest pre-Katrina and Rita, is all set to become the biggest insurance agency in Florida, with a total of 1.2 million policies and counting.
Private insurers are also hiking their rates, according to the Florida Office of Insurance Regulation, which said that State Farm, a privately owned insurance agency, had sought an increase of 74 percent on its insurance rates.
Politicians have promised to address the issue of homeowners’ insurance in their campaign promises, the Legislature has put aside $250 million for property owners to strengthen their homes, but these measures are not enough to stop the exodus from Florida.
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