The Real Deal Miami

State-run property insurer may not ride out tough storms

September 21, 2009 08:59AM

Citizens Property Insurance, the state-run insurer of last resort, may not have enough money to pay out claims if South Florida is hit with a devastating storm. It covers approximately 1.06 million homes, condos and apartment buildings, many of which are in vulnerable coastal areas that are too old and close to the water to be covered by private insurers. Rates have been frozen since 2007 and insurance regulators, legislators and critics of Citizens say the company’s frozen rates aren’t actuarially sound. While rates will start rising after a long legal battle, critics say there’s a need to do more than hope the worst storms miss the state.