The Citizens  board votes today on a 429% rate hike as a state wide average. This increase  could cost thousands/ year to sinkhole prone areas like Tampa and other areas, but only a few hundred/ year  in S. Florida and Fort lauderdale. This one is not a big deal for many of us, but other parts of the state could suffer big time. Even if the new bill just passed by the Legislator’s in Tall. and signed by Governor Rick Scott works at reducing claims by 60%, the sinkhole premium shortfall is almost 200 million and that still means rate hikes are likely. This will be on top of the rate hike already voted on to now be 25% on a State wide average(Starts 1/1/2012) which could mean as much as 40% to Fort lauderdale and all of S. Florida and that is also thousands of dollars / year /client. I guess Citizens will become the company of last resort again without the Citizens bill even being voted on or passed. This increase together will raise rates so much that all 1.4 million people will want to leave Citizens, but which carrier has the capacity to handle this problem and that answer is still nobody!!!  This is what the Governor never understood, no carrier wants the risk at any premium becuase it is proven that when a big Hurricane hit’s or Sinkhole claims get worse the cost of repairs cannot be measured properly and it is not affordable. The entire country is seeing this now especially with all of the Flood waters(Paid thru FEMA) rising all over the country. In any event we will see how the vote is handled today and I will report again tomorrow or when the news is out. Please call us at L & S Insurance for  all of you Home, Auto, Flood and business and commercial policies as well for Fort luderdale and all of Florida. Pleas eenjow the article on the Sink Hole vote today.

http://www.insurancejournal.com/news/southeast/2011/09/12/214975.htm

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