I still don’t see what would be controversial about making the basic Citizens policy exactly that, basic with buyback options. HO8 with replacement cost, theft, and water buyback would make them solvent and would negate the need for a rate increase.
That doesn’t do anything to make them less competitive with the private market though. Agents who are limited in their markets will still push Citizens and say ‘it’s the only option.’ Then they’ll say how much more financially stable Citizens is than some of these private markets (not sure how they say that without breaking into the giggles).
The end result will be less coverage for policyholders rather than proper coverage with a private market carrier.
It’s possible, maybe even likely that the traditional private market would come back under those circumstances to sell their own buy what you want type of policy.
I’ve talked to a lot of bean counters with a lot of carriers. What do they worry about other than catastrophe? Water, sinkhole, and inflated claims. If they could price water, comprehensive theft coverage, and other factors separately likely they could offer a better rate/product than Citizens.
Whew! This oughta solve the problem!
Good job Citizens!
(we need a sarcasm font)
I still don’t see what would be controversial about making the basic Citizens policy exactly that, basic with buyback options. HO8 with replacement cost, theft, and water buyback would make them solvent and would negate the need for a rate increase.
That doesn’t do anything to make them less competitive with the private market though. Agents who are limited in their markets will still push Citizens and say ‘it’s the only option.’ Then they’ll say how much more financially stable Citizens is than some of these private markets (not sure how they say that without breaking into the giggles).
The end result will be less coverage for policyholders rather than proper coverage with a private market carrier.
It’s possible, maybe even likely that the traditional private market would come back under those circumstances to sell their own buy what you want type of policy.
I’ve talked to a lot of bean counters with a lot of carriers. What do they worry about other than catastrophe? Water, sinkhole, and inflated claims. If they could price water, comprehensive theft coverage, and other factors separately likely they could offer a better rate/product than Citizens.
Is there anything from stopping them from doing that now, though?
“Is there anything from stopping them from doing that now, though?”
I think it’s called Citizens. It would cost about the same as a Citizens with much less coverage. Why offer something you know you won’t sell?