I am mad and cannot why our florida policitians cannot figure out what to do?

Question

On the news, there was an announcement that because of the other insurance companies Citizens will have to ask for a 55% increase in insurance rates. Our politicians are wringing their hands and say they do not know what to do. Well, I have a suggestion (1) Allow anyone to join Citizens and have Citizens roll back the premiums to the rate of 3 years ago. (2) have a law that insurance premiums cannot increase more than the Federal Cost of Living Adjustment. (3) have a fee leveled at all insurance companies, no matter what kind of insurance they sell (say 1% of premiums) that will be used to pay any damages over the amount of money Citizens collects for homeowner insurance. (4) If any company wants to offer homeowner insurance, they cannot go to Citizens insurance for policyholders unless they will give as good benefits and as low a premium (in other words no one can be forced off the Citizens Insurance (5) reduce the decible for wind damages down to level of other damages. SOUND GOO

I was an insurance adjuster (not agent) for over 8 years, and during that 8 years the company I worked for never had less than 25% profit on their vehicle insurance in the state of Florida. Insurance Company are making a killing in this state. Agents have no idea of the amt of money that is profit on a policy

Answer 1

Ya know, I typed out a HUGE answer to this about what the results of each of these ideas would be, but then had a big fight with my husband, and he closed the window before I could send it.

So the short of it is, the companies can't make any money under your ideas, as claims are too high, so they'd all stop doing business in Florida - not just homeowners, but ALL business. So that would make the overall insurance situation WORSE.

The REAL problem is, the insurance claims are increasing dramatically, making it really, really expensive to want to insure a house (from the company's point of view) in Florida. Losses are up. When losses are up, you can't legislate payouts down, which is the only way you'll get premiums down!!

Answer 2

With your ideas no insurance company would be willing to do business in Florida and then you would really be screwed when the next hurricane hit. Its simple logic that if you live in an area prone to natural disasters your premiums will be dramatically higher than others. Just as those who live in areas with high auto accident rates pay more for their auto insurance. And lets not forget one simple thing.....insurance companies are out to make money just like any other business and they have to do what makes sense to ensure a profit for their shareholders. If you owned a business you wouldnt continuously sell a product for a loss would you??? No, you would increase the price until you were making a profit.