Why Florida's Home Insurance System Subsidizes Those in Hurricane Prone Areas - kids air jordan

Or you could be asked to make up the difference if FIGA doesn't have the resources to pay off all of the claims of policyholders who were with a Florida home insurance company that became insolvent kids air jordan.So far, at high level, each of these various entities and the protections that they offer make sense.

And when they work properly they do help further diversify Florida's hurricane risk and help make it attractive for Florida home insurance companies to continue to do business in the state Penny Hardaway Shoes.However, the Florida Property Insurance Legislation of 2007 and 2008 have changed and politicized the mission of each of these organizations to a point where they no longer work as they were intended.

Why Because Florida lawmakers are afraid to tell the public the truth - that these entities are now seriously underfunded and not positioned to do what they are supposed to do Nike Air Foamposites. Even worse, many Floridians don't know that they are subsidizing the Florida home insurance premiums of someone else.

At the present time, both the Florida Hurricane Catastrophe Fund and Citizens Property Insurance Corporation are underfunded and heavily dependent on an unfriendly bond market to meet their obligations lebron shoes for sale. Both have to try to borrow in advance of Florida hurricanes with mixed success to raise the cash that they need and are coming up short as the country works through the financial crisis.

Citizens Property Insurance Corporation is the one organization that causes each of us to subsidize the Florida insurance costs of someone else. All of us will be paying annual special assessments for years to come for the cash shortfalls that Citizens experienced during the 2004/2005 storms. Cash shortfalls are just another way of saying that those who were insured with Citizens for the 2004/2005 storms, were simply not charged enough premium for that coverage. Many of those homes are older homes located near the Florida coast directly in hurricane alley. After the 2004/2005 Florida hurricanes, Florida lawmakers froze the rates being charged by Citizens - a politically popular move that also had the effect of making everyone in Florida no matter where they live, subsidize the Florida home insurance rates of those who live in the most hurricane prone areas of Florida.Last but not least, because the rates of Citizens have been frozen for the past few years, even when consumers can find Florida home insurance in the private market, they are still given the choice of being insured by Citizens and being undercharged for their insurance.This subsidized insurance that many Citizen policyholders receive, comes at a price. It is funded mainly through special assessments that all of us are required to pay on our Florida homeowners insurance bills each year.