Comments about real estate, economy, and issues that affect my job as a Realtor.
Lately, of great importance is the display of the most important
PRE-CONSTRUCTION PROJECTS IN SOUTH FLORIDA.
My name is Henry B. Nathan
I am a realtor at United Realty Group.
My phone # is 954-296-6741
Everything was working out fine. Citizens was doing a
great job. It handled well all claims during the last storms; And Citizens was even able to put together
an adequate reserve fund.
Then the private insurers that had deserted us
Floridians a few years ago as soon as they had a taste of substantial losses, came back
after more than a decade. Apparently the business wasn’t so bad after all. Citizens was created because Insurance companies did not want to insure our homes; that's the bottom line. But they found up that Florida wasn't that bad and that they could generate enormous profits off Citizens' demise.
(by way of their lobbyist, I guess) forced Citizens into giving up a large part of its policies to a bunch of
companies – unknown of most of us.
And now Citizens is starting to do what all these new insurance
companies will soon start to do on us:(you
can bet on it: Come back periodically with rate hikes, which we thought were a thing of the
Want to think of a parallel? What if Medicare was forced to privatize and
leave to private insurance the task of covering senior citizens health?
I can surely affirm that what is now an excellent
coverage would soon degrade into a bureaucratic mess, cost double, and hike up our contributions
Insurance Commissioner Kevin McCarty
to "strongly consider" the large amount of reinsurance purchased by
the state-backed Citizens Property Insurance – and to do it before the
Florida-owned firm makes a decision about its requested 3.2 percent rate hike.
Consumer advocate Sha'Ron James also
asked McCarty in a letter Monday to review Citizens' debt financing and
water-loss claims before setting rates for 2016.
Reinsurance is essentially backup
coverage purchased by insurers – an insurance policy for insurers.
"The purchase of additional
reinsurance has led to the need for increased premiums, despite the decrease in
the number of policies and the significant reduction in reinsurance costs
worldwide," James wrote to McCarty.
She questions whether the level of
reinsurance Citizens carries "exceeds the level of adequacy needed to
fulfill its obligation to its current policyholders."
The Florida Office of Insurance
Regulation is currently reviewing the rate hike request. The new rates would
vary by county and depend on a property's location, the home's style, and the
type of policy.
Yesterday, the chief risk officer
for Citizens Property Insurance sent a letter back to James defending the
proposed rate hike.
"Citizens has secured enough
reinsurance, at historically low rates, to blunt the possibility of assessments
even in a benchmark severe event, known as the '100-year storm,'" Rollins
said in his letter. "Better yet, much of this $6.9 billion in protection
kicks in more often for smaller storms, such as a named storm with a 10 percent
chance of striking each year, and it covers the case of multiple storms in a
According to Rollins, Floridians
would have paid $11.5 billion in assessments if a 100-year storm hit four years
ago, but today they would likely pay nothing.
Citizens President and CEO Barry
Gilway contended last month that a "disturbing" rise in water-damage
claims in South Florida has driven the need for the proposed rate increase.
Henry B. Nathan
United Realty Group Inc.
(954) 296-6741 – (80) 416-2747
I am a Licensed Realtor in South Florida, specializing in pre-construction and luxury real estate. Please visit my websites: www.miami-new-construction.com