Capping coastal home insurance coverage at $1 million and providing grants for home fortification against hurricanes are among suggestions proposed for Citizens Insurance, the state’s property insurer of last resort.
A task force has recommended requiring a rapid cash buildup of the Hurricane Catastrophe Fund, which has been severely depleted.
The committee was established by the Legislature to make recommendations for running Citizens Property Insurance Corp., a state entity which insures properties deemed too high-risk by private carriers.
“I think the Florida Legislature is very serious about reducing Citizens’ exposure,” Insurance Com-missioner Kevin McCarty, task force chairman said.
Cutting the more than 6,000 homes it insures for more than $1 million would drop Citizens’ exposure by $900 million, Susanne Murphy, the insurer’s corporate counsel said. That could ultimately mean the company would be able cover its losses without assessing all Florida policyholders, who saw a 6.8 percent surcharge on premiums to cover Citizens’ $500 million shortfall in 2004.
The Citizens task force meets Feb. 27 in Tallahassee.
Was this article valuable?
Here are more articles you may enjoy.
Barge Looted in the Bahamas Returns to Florida but Insurance Claims Mounting 
AIG to Pay Neal $2.7 Million to Cover Previous Firm’s Bonus 
‘Clear Soft Market Conditions’ for Commercial P/C Lines in Q3, Says CIAB 
Insurance IPOs Hit 20-Year High on Wall Street From This Issue
