Are we really insured here in Florida?

Real Estate Agent with The Keyes Company 3195704

I just finished reading an article in the Miami Herald and then ask myself why am I buying insurance. The answer was for financial protection from a major hurricane, so that I would not have to pay an excessive amount that I could not afford after a storm. Our lawmaker here in Florida changed the 2006 Insurance Law so that if they were unable to pay claims they could assess policy holders any where from 30-90% of the annual premium. Before this other insurance companies were assessed the amount needed to pay claims, that was the risk the companies took sell insurance in Florida. Now this risk has been placed on the home owner, who purchased insurance just to prevent this unexpected expense.

The break down on how pays what is pretty straight line, each assessment could be as much as 30%. With multiples attached to different types of properties. The highest is Business with a 3X or 90%. Non home stead and Snowbirds 2x or 60%. they say there thinking is that out-of-towners benifit from the state run insurance program so they should pay MORE! As for all of us policy holders the Lawmakers feel since we are the no benefiting from the insurance we should be tapped for the cash first. I don't know why but i just can't understand their logic, and probably never will.

Citizens say its exposer in the market is $485 Billion and it currently has $9 Billion in the bank to cover losses. All you have to do is Google "Cost of Katrina" and the numbers are there $200 Billion is the cost to the United States  government. Any CAT 5 storm that hits a major city in Florida will drain the citizens cash overnight. So the question are we Really Insured here in Florida? Why are  the large insurance companies still on the hook to bail out the State insurance fund if needed?

I'm interested in finding out your take on this matter. Do you agree with the lawmakers in this matter? Are there other issues out there that have not surfaced yet?

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