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Citizens Property Insurance Corp
Florida homeowners, especially those in high-risk areas, experience a difficult time getting insurance coverage for damages caused by hurricanes and windstorms. Many private insurance companies are almost adamant at writing new policies that are specific to their insurance needs. For this reason, the Citizens Property Insurance Corp was created.
Citizens Property Insurance Corp was formed from the combination of two state-owned insurance entities. These insurance companies that make Citizens Property Insurance Corp are the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Underwriting Association (FWUA). The Florida legislature passed a law in 2002 combining these two companies in order to create the Citizens Property Insurance Corp. When they formed the Citizens Property Insurance Corp, it was their aim to provide insurance coverage for Florida homeowners who are unable to get insurance coverage from the private insurance market.
The reluctance of private insurance companies to fund coverage for homeowners in high-risk Florida is not without reason. Just recently, four hurricanes hit Florida and devastated several homes. According to estimates as of July 28, 2004, Citizens Property Insurance Corp has a total of 78,257 insurance claims to evaluate.
Citizens Property Insurance Corp is a state-run insurance company. As such, Citizens Property Insurance Corp can offer coverage of up to $350,000. This amount from Citizens Property Insurance Corp covers damages and the cost of repair and rebuilding. Aside from the actual house, Citizens Property Insurance Corp also pays for the reconstruction of other structures, such as fences, swimming pools, and such. In addition, Citizens Property Insurance Corp includes coverage for replacement of lost or damaged items and liability costs.
After hurricanes Charley, Frances, Ivan, and Jeanne wreaked havoc in Florida, Citizens Property Insurance Corp faces a total net loss of $1.77 billion. According to Risk Management Solutions, a separate entity that reviews damages to be covered by insurance, there are almost 92,000 homeowners who are filing claims at Citizens Property Insurance Corp. This number, which is 13,743 more than what Citizens Property Insurance Corp earlier projected, is still expected to rise within the next few months.
In a report filed by Risk Management Solutions, Hurricane Jeanne takes $252 million in damages from Citizens Property Insurance Corp High-Risk Accounts (HRA). $53 million is the estimated number for the former Florida JUA Personal Lines Account (PLA) of Citizens Property Insurance Corp. And for the Commercial Lines Account (CLA), Citizens Property Insurance Corp will pay for $27 million.
For Hurricane Ivan, Citizens Property Insurance Corp will cover close to $232 million total from damages in all three accounts, including the wind-only, residential multi-peril, and commercial residential policies. Citizens Property Insurance Corp will suffer $225 million in wind-only policies from Hurricane Frances. In addition, Citizens Property Insurance Corp has to prepare $65 million to cover their Personal and Commercial lines accounts.
It is Hurricane Charley that will take the biggest cut from Citizens Property Insurance Corp. With an estimated $850 million cost in High-Risk Accounts, according to Risk Management Solutions, Citizens Property Insurance Corp faces a total of $925 million in all three accounts.
Citizens Property Insurance Corp has raised their premium prices on their windstorm policy so they could keep up with all these claims. The increase of Citizens Property Insurance Corp premium could reach up to 67 per cent. On the average though, Citizens Property Insurance Corp only increased their yields to 11.9 per cent in their two other policies.
MORE RESOURCES:
New Waterford trims property insurance costsSalemNews.net, OH - Dec 26, 2008Fiscal Officer Mike Harold said the village's property insurance will cost $8463 less than it did last year. This year the village will pay $16542 while ... |
China Guodian to enter property insuranceChina Daily, China - Dec 17, 2008By Wang Lan (chinadaily.com.cn) China Guodian Corporation is considering setting up a property insurance company in Beijing to diversify business into other ... |
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