Citizens Sticker Shock

Several weeks ago, I received my renewal notice for my homeowner's insurance premium. The only way to describe my first reaction was sticker shock. My premium increased almost $900.00 over last year's bill, making this year's total a whooping $1,897.00 for my coverage. Included in this amount was a line item for $165.00 for the bailout of Citizens Insurance. With all the news coverage about the insurance crisis in this state, I was not surprised by this large rate increase, just disgusted, knowing this problem could have been fixed by the Florida Legislature this year in their regular session. Just after paying my yearly premium, I received an email titled, An Unwise Growth Subsidy. This email was an article about other types of insurance that is underwritten by Citizens Insurance, one of which is a type of insurance to developers called a Builders Risk policy. Builders Risk insurance provides coverage to developers while a building is under construction. At the end of May 2006, Citizens Insurance was covering 5,723 construction projects for condos, single family homes and commercial buildings throughout the state of Florida, with a total exposure of $5.1 Billion in high risk areas. It seems Citizens Insurance encourages development in areas of high risk where building should not even occur because of the jobs and economic opportunity created by these projects. Once these projects are built, the property owners will wind up with Citizens for homeowners coverage. For example, one Builders Rick policy is covering a $74 million condo project on the beach which is currently under construction and guess who is subsidizing this project? You, me and every other homeowner in this state with homeowners insurance is subsidizing high risk properties and construction projects. Governor Jeb Bush needs to step up to the plate and immediately call a special session of the Florida Legislature to fix this insurance crisis instead of ignoring the growing roar of voices pleading for help from all 67 counties in this state. Hats off to the Hernando County and Pasco County Commissioners who voted to send letters to the state, requesting a special session be held to fix the insurance crisis plaguing homeowners.