On Thursday, the chairman of the Senate Budget Committee launched an investigation into Citizens Property Insurance — Florida’s insurer of last resort.
Citizens’ market share in Florida has more than doubled since 2020 and is only expected to continue growing as private insurers in the state continue to go insolvent or exit Florida altogether. Because of this, the committee says it’s concerned that if Citizens is unable to cover its losses, it might ask the federal government for a bailout.
“The Committee is … increasingly concerned about Florida’s uniquely large and growing exposure to climate-related property losses, Citizens’ rapidly expanding market share, and state law allowing Citizens to levy special assessments on all policyholders in the event that losses exceed its ability to pay,” Chairman Sen. Sheldon Whitehouse (D-RI) said in a letter from the Senate Budget Committee.
According to Whitehouse, a bailout request would put the government and American taxpayers at “substantial risk.”
The letter also mentions that Gov. Ron DeSantis himself acknowledged that Citizens would likely be unable to pay out claims if Florida were hit by a large hurricane.
Under the investigation, the committee is asking Citizens for documents that detail the insurer’s plan to address increased underwriting losses from extreme weather events like droughts, heatwaves and sea level rise. It has also requested information related to:
- Citizens’ current assets
- The maximum total claims Citizens would be able to pay without having to levy an assessment on Florida policyholders
- Any communications Citizens may have had with DeSantis about its future solvency
- If Citizens has considered asking for a federal bailout
According to the Senate committee, this investigation comes amid a larger probe into the insurance industry’s response to climate change and potential economy-wide harms from widespread uninsurability.
The committee has requested that Citizens provide the documents by Dec. 21, 2023.
My home insurance has more than doubled in the past few years. Most homeowners are unable to pay these high premiums. And we simply don’t see a way out!
My homeowners insurance has doubled in one year and I am not in a flood zone why do I half to pay so high of a premium.
This is what scares me to purchase a house in Florida. We moved here from the Midwest and our house insurance was very low compared to what I hear alot of people doing they pay, on top of the taxes. You working just to pay house insurance and that’s if you can get covered.
I had wind and hail damage on my home with obvious hail damage, because A horrible solar company damaged my roof the insurance company refused entire claim I was strapped financially , my husband had passed couple months prior , was a decorated combat veteran died of agent orange. Insurance company denied entire claim. Insurance companies are less than honest!!
Mistakes by FL legislature in a rush to find a fix.
I’m in agreements a 100% on these insurance rates And companies.. they’ve been ridiculous over the last 20 years in Florida.. However let’s not forget Our local government that should be Reinforcing and correcting our infrastructure And drainage issues.. And how about those lovely corporations they’re making money hand over fist for electricity why aren’t our power lines underground? Why aren’t we working with alternative power? This would make our storm season more bearable, cost effective and most importantly working.
What I don’t understand about homeowners insurance is that there were so many people who did not file a claim for many years but yet we still get increases. Other states that have had severe damages from flooding and fire I don’t believe that they are paying more or as much as some of us. there has to be an answer or a solution to this problem because we are all suffering not only just with the insurance but with rent and mortgages so when do we get a break.
Send them all to Jail!!!!
Including the Florida politicians!!!!!
Fraud all over the State!!!! Shameful!!!!
Home insurance for a home of $500,000 in Fort Lauderdale is $10,000 a year , old home 1975, never no claim filed. I can’t afford any longer, what can I do.