Citizens Insurance rates expected to rise - New York News

Citizens Insurance rates expected to rise

Posted: Updated:
ALTAMONTE SPRINGS, Fla. (WOFL FOX 35 ORLANDO) -

Some state leaders have been in Tallahassee all week pushing to raise the rates of state-backed insurer Citizens Insurance. 

Citizens was created in 2002, because of catastrophic hurricanes and other disasters. It's a state-backed insurer meant to be the last resort for  homeowners who can't get any other private insurance.  But according to State Senator David Simmons, R-Altamonte Springs, "Citizens has become dysfunctional, and schizophrenic."

Right now, Citizens holds 1.3 million policies, insuring 24 percent of all property in the state.
Everyone seems to be buying it, and few are turned away due to what critics call a lack of oversight.  Simmons likens it to a man-made disaster.

"It's not only selling insurance policies higher than anyone else," he says.  "It's selling policies less than for anybody else!"

In September of 2011, Citizens underwent a bunch of rate changes, but some people got big hikes, others got big cuts.  So now, when you look at a map, people in some parts of the state pay higher rates than people in other parts of the state.  In fact, in some southern areas like Broward County, Simmons says many homeowners tend to pay a lot less.

Sen. Simmons says that's because some politicians have pushed for lower rates to gain political favor with their voting constituents. 

"I take responsibility for fixing a problem that was created based upon the fact it was created in the time period of 2007, when insurance premiums were increasing dramatically and the legislature was looking for a solution.  We came up with what was supposed to be an interim solution.  But what happened, however, is people got used to the good thing."

Simmons says that good thing is insurance that costs much less than what is needed in order to actually cover that next big disaster.  He says next week, lawmakers hope to draft a bill to raise rates and stiffen oversight, and then the following week public hearings will be held.

 

 

Follow us on Pinterest

 

  • Local NewsLocal NewsMore>>

  • Newark school enrollment problems

    Newark school enrollment problems

    Friday, August 22 2014 5:17 PM EDT2014-08-22 21:17:11 GMT
    The school year in Newark is getting off to a rocky start. Classes start in less than two weeks and parents are still waiting in line for hours to find out where their kids are enrolled. The problem is being blamed on a glitch in the school's new online open enrollment system. To say mother of three Jennifer Caraballo is frustrated may be an understatement. She is one of hundreds of Newark parents desperately now trying to find a new school for her children.
    The school year in Newark is getting off to a rocky start. Classes start in less than two weeks and parents are still waiting in line for hours to find out where their kids are enrolled. The problem is being blamed on a glitch in the school's new online open enrollment system. To say mother of three Jennifer Caraballo is frustrated may be an understatement. She is one of hundreds of Newark parents desperately now trying to find a new school for her children.
  • U.S. Open preview

    U.S. Open preview

    Friday, August 22 2014 4:52 PM EDT2014-08-22 20:52:40 GMT
    Heading into the U.S. Open, Roger Federer, Rafael Nadal, Novak Djokovic and Andy Murray have won 36 of the past 38 Grand Slam titles, a stretch dating to the 2005 French Open. Nowadays, there seems to be a growing sense — or hope, maybe — among the best of the rest on the men's tennis tour that the quartet might be more vulnerable than ever.
    Heading into the U.S. Open, Roger Federer, Rafael Nadal, Novak Djokovic and Andy Murray have won 36 of the past 38 Grand Slam titles, a stretch dating to the 2005 French Open. Nowadays, there seems to be a growing sense — or hope, maybe — among the best of the rest on the men's tennis tour that the quartet might be more vulnerable than ever.
  • Mark David Chapman

    John Lennon's killer denied parole again

    John Lennon's killer denied parole again

    Friday, August 22 2014 4:10 PM EDT2014-08-22 20:10:09 GMT
    John Lennon's killer was denied release from prison in his eighth appearance before a parole board, New York corrections officials said Friday. The decision on Mark David Chapman by a three-member board came after a hearing Wednesday, the state Department of Corrections said. Chapman fired five shots on Dec. 8, 1980, outside the Dakota apartment house where Lennon lived on Manhattan's Upper West Side, hitting the ex-Beatle four times.
    John Lennon's killer was denied release from prison in his eighth appearance before a parole board, New York corrections officials said Friday. The decision on Mark David Chapman by a three-member board came after a hearing Wednesday, the state Department of Corrections said. Chapman fired five shots on Dec. 8, 1980, outside the Dakota apartment house where Lennon lived on Manhattan's Upper West Side, hitting the ex-Beatle four times.

FOX 35 Weather Authority

Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices