According to news-press.com, Citizens Property Insurance Corp., Florida’s State backed homeowner’s insurance company has decided to shelve it’s controversial $350 million loan program conceived to help it shed thousands of the 1.4 million policies it currently underwrites.
Program Under Fire
Right from the start, company officials had been subject to great criticism due to their intended plan to use $350 million of the insurers’ reserves to entice private insurance companies to underwrite thousand of policies that are unwanted by Citizens. These funds have been accumulated due to a combination of continued increases in insurance premiums and higher deductibles, coupled with a few years of almost no damage due to hurricanes and windstorms. As a result, Citizens has been able to build a $6.2 billion reserve from which the above mentioned $350 million were to be taken.
The money was to be used to provide 20 year low interest loans to private insurers agreeing to underwrite for a period of at least 10 years thousands of policies currently under the Citizens umbrella. The problem is that several of the insurance companies that had agreed to underwrite those policies had troubled financial records and are themselves at risk of going bankrupt should a major hurricane hit Florida. Moreover, the need for the loan program was also questioned because some other private insurers had already taken over policies from Citizens without requesting the payment of any cash incentives.
Program Under Review
In fact, Citizen’s President, Barry Gilway, who took over leadership of the insurer in June and presented the program shortly thereafter, is now questioning whether given the financial conditions imposed there would be any takers among the private insurers it is supposed to entice. Outside investment advisors are currently reviewing the program as early discussions with potential companies have indicated a need to make changes to the plan. These advisors should have their recommendations ready early this year.
The Lawyers of Greenberg Stone and Urbano Can Help
You should always have an attorney help you review your policy and advise you on what coverage you should have and for how much. If you are about to renew your policy (with the same insurer or a new one), we can help you review it and make sure you are adequately covered and in a position to avoid costly expenses should disaster strike.
Moreover, please note that if your home has already sustained damages, our team of loss consultants, paralegals, and attorneys will assist you in every aspect of your claim. Our loss consultant will even go to your home to evaluate the damage you sustained at no cost or obligation to you. Contact us today for a free inspection by our loss consultant.
With more than 100 years of combined experience, the Miami Dade County Homeowners Insurance Claims Law Offices of Greenberg Stone and Urbano have helped thousands of Homeowners all over Florida review their policies, present their claims and get the compensation owed them by their insurance carrier. Visit our website to learn more about our firm and contact us today for a free consultation.