State-backed Citizens Property Insurance is considering a 56 percent rate increase for new wind storm insurance customers effective next year, according to the Sun Sentinel. Existing customers would be unaffected by the insurance company’s tentative plan to uncap rates, but, if passed, it would mean neighbors with the same coverage could be paying drastically different rates. The committee reviewing the plan met today and decided to hold a workshop over the summer so that real estate agents can “offer solutions rather than just criticism.” [Sun Sentinel]

A bill that would have given additional insurance companies the opportunity to take over policies from state-backed Citizens Property Insurance is off the table, after the House, which originally passed the bill, rejected changes made by the Senate. “We’re finished with it for this year,” said Rep. Jim Boyd, who sponsored the bill. Proponents of the bill had claimed that it would make Citizens smaller, while critics worried over the risks of untested companies. [Sun Sentinel]

Kevin Roth

Citizens Property Insurance’s decision to raise some premiums has inspired one South Florida resident to protest — in song. Kevin Roth, a folk singer, posted a song called “Citi-Sins” to YouTube yesterday. [more]

Some Citizens Property Insurance premiums could jumpy as much as 21 percent, the Sun Sentinel reported. Policies affected include those for condominium buildings with a replacement cost of $10 million or more and those that have coverage for fire, theft and hurricanes, among others. The move follows a price increase in 2009 and 2010 for some condo buildings. [more]

A lawsuit filed in Pasco County alleges that state-backed Citizens Property Insurance inflated replacement costs, driving up customers’ bills, the Palm Beach Post reported. “We’re going to be asking for rebates,” said Mark Beausoleil, an attorney representing the customers. Citizens said it was simply looking to establish an accurate replacement cost. [more]

A lawsuit filed this month in Miami alleges that a series of newly-passed insurance regulations are unconstitutional, according to the Sun Sentinel. Public adjuster Eduardo Rodriguez claims the parts of the law that mean public adjusters cannot get paid until insurers make an offer, and limits what they can charge, contravenes the state constitution. The laws, contained in SB 408, apply to policies of state-backed insurer Citizens Property Insurance. [Sun Sentinel]
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Insurance rates on condominiums in Florida could rise as much as 19 percent for certain buildings if a Citizens rate hike is approved. The state-backed insurer is considering raising rates on condominium associations with $10 million or more in coverage. At present, the company has 925 condo policies exceeding $10 million, with a total risk of $28.6 billion. Those condos pay a total of $142 million in premiums. According to many insurance agents, Citizens’ condo rates have been cheaper than those of private insurance companies for some time. [Sun Sentinel]
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A number of household items will no longer be eligible for coverage by Citizens Property Insurance after the state-backed company announced a series of cuts that will take effect next year, according to the Sun Sentinel. Awnings, gazebos and tike huts, along with carports and other similar structures will no longer be covered, in a change that will affect both new and existing policies. What’s not certain is whether coverage exists for other structures, like fences and cottages. [more]

Almost all of the seats on state-backed property insurer Citizens have been filled, after eight were left empty when the board’s term expired Aug. 1. Two appointments each come from the governor, the CFO, the House speaker and the Senate president, although Gov. Rick Scott has not yet made his two appointments. The board votes on claims policies, budgets and other issues regarding policyholders. New board members include Nancy Bally, former president of Travelers of Florida, Rob Wallace, a former state legislator from Tampa and Carol Everhart, vice president of insurance services at BB&T in Tampa. [Sun Sentinel]
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Citizens Property Insurance Chairman Jim Malone broached the idea of privatizing the state-backed insurer yesterday at a meeting in Naples. “I’m out of ideas as to how to lower the risk … and not have this train wreck coming at us,” he said. Florida Gov. Rick Scott was also open to the notion, saying that if privatization could lower the cost of insurance, he’d “want to look at it very closely.” Malone was critical of a decision by the Florida Legislature not to pass a law allowing the company to raise premiums by more than 10 percent a year. [Sun Sentinel]
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