September 15, 2006
No End To Florida’s Insurance Woes
The home insurance sector in Florida is spiraling out of control and needs to be reined in before it causes the state’s economy to collapse. I know this sounds a bit over the top but if experts are to be believed, the announcement that Floridians who pay homeowner insurance premiums will have a one-time charge added to help cover Citizens Property Insurance Corp.'s $1.7 billion deficit, is just the beginning.
Florida is one of the few states where you pay more for less coverage. According to recent data, policyholders in Florida pay much more than their counterparts elsewhere. And yet, they receive lesser coverage, higher deductibles and policy exclusions. Moreover, they are also liable for the enormous deficits of the state's three bailout funds: the Florida Hurricane Catastrophe Fund, Citizens Property Insurance and the Florida Insurance Guaranty Association. So, is there a solution to this impending crisis? To be honest, I believe Floridians are in for some tough financial times.
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