September 22, 2006
Citizens Insurance Spent $312,000 Of Your Money On Brochures
There’s a brochure doing the rounds of Florida. A brochure with lots of happy people, smiling because they’ve got homeowners insurance cover. No problem with that, coz jut about every firm advertises. The problem is with the firm that is giving around these pamphlets – Citizens Insurance. Citizens is supposed to be the insurer of last resort and hence really doesn’t need any advertisement. But that isn’t what got Floridians angry.
Actually, all Floridians have no choice when it comes to paying for Citizens. Because every policy holder in the state, regardless of what company that have insurance with, pays a 9 percent surcharge that goes to Citizens. In addition the company receives $750 million dollars from the state to keep it afloat. And the reason why this brochure angers them: It’s costing a total of $312,000 dollars for the pamphlet plus an additional charge for postage – and all this is paid for from the money collected from the common folk of Florida. Tampabays10.com reports:
Not only are Citizens policy holders captive customers, they are also paying the highest rate possible. Under state law citizens can not charge rates lower than the most expensive insurance company in an area. An anti Citizens group, homeowner against Citizens estimates the average Citizen's policy is 20 percent more expensive than other insurance.
Read more: Citizens Insurance spend hundreds of thousands on pamphlet
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