Dean Asher

Florida lawmakers are not the only ones returning to the legislature in the next few weeks. The real estate trade organization Florida Realtors will also be there, lobbying for “sustainable and affordable” property insurance, the group announced. “There will be a major focus this session to stem the tide of policies entering Citizens Property Insurance Corp., which is currently around 8,000 per week,” John Sebree, Florida Realtors’ senior vice president of public policy, said. The 118,000-member organization is also supporting legislation that supports affordable housing, reform of the judicial foreclosure process and elimination of the tax on commercial rents.
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Florida’s state-backed insurer Citizens Property Insurance is accused of rejecting approximately two-fifths, or 90,000, of the discount reports filed by their own inspectors, costing customers nearly $50 million, a study of some 225,000 inspection records by the Palm Beach Post showed. The majority of the rejections are due to cosmetic issues with reports — such as them being incomplete, having poor photo quality, or wrong or duplicate photos — and had little bearing on the actual improvements made to homes. [more]

The Citizen’s Property Insurance saga continues, after a public outcry over $137 million in premium increases that must still be ringing in the state-backed insurer’s ears. According to the Miami Herald, Citizens is responding to the uproar surrounding its ongoing home inspection program, which cost homeowners millions in insurance discounts, by implementing significant inspection reforms and offering those who lost discounts the opportunity for a free second inspection, as wells as new tools for customers to challenge findings. [more]

Citizens Property Insurance President Barry Gilway says Florida’s lawmakers should consider raising the cap on rate increases for policyholders, according to Sunshine State News. There is currently a 10 percent cap on rate increases, but that should be exceeded, he told Governor Rick Scott and the Florida cabinet. “You can’t ignore the fact that rate is an issue,” Gilway said. [Sunshine State News via SFBJ]

State-backed Citizens Property Insurance has named executive Barry Gilway its new president, replacing Tom Grady, who had been the company’s interim president since being named in March by Gov. Rick Scott, the Palm Beach Post reported. Gilway was previously the CEO of Mattei Insurance Services in Maryland. Citizens’ board is currently meeting in Tampa. Grady was reportedly in the running for the permanent post in a pool of five candidates. [Palm Beach Post]

State-backed Citizens Property Insurance heard calls Monday from 25 Florida lawmakers demanding cuts they believe to be necessary to encourage private insurers back into the market, the Sun Sentinel reported. The insurer is meeting opposition from politicians opposed to state-funded programs and is being told to raise its rates to what they say are more competitive levels. [more]

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]