December 2017

Please call Lee from Acentria Insurance at 954-351-1960 or cell at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial, & life, group & Financial products as well.

Citizens Property Insurance Corp., the Florida state-run insurer of last resort, is anticipating its policyholder count will increase in 2018 for the first time since its efforts to shed policies through depopulation began several years ago.

As it moves on from a tumultuous 2017 that included a major hurricane and ongoing assignment of benefits (AOB) abuse, Citizens executives said at its board of governors meeting last week that it anticipates more than 60,000 policyholders from private insurance companies will return to the state-run insurer of last resort.

Citizens President, CEO and Executive Director Barry Gilway told the board at the Dec. 13 meeting that the Florida domestic insurance market’s combined ratio and surplus have declined, and the majority of Florida insurers experienced negative net income for the first time in five years.

While the active 2017 storm season is one factor contributing to deteriorating insurer results, the biggest factor is increasing costs from nonweather-related losses and AOB abuse fueled by attorneys and contractors. The industry has started taking steps to limit losses from AOB, with some insurers not writing in certain areas of the state where it is the rampant.

Citizens, which is statutorily obligated to offer coverage when the private market will not, will have to pick up these policies. Gilway said he expects Citizens will see significantly less depopulation next year.

“When the market is healthy, and companies are making money, depopulation soars; when it becomes negative, depopulation drops. We are not expecting a lot of depopulation next year,” Gilway said.

Instead, Gilway said, Citizens is expecting its overall policy count of 442,000 – the lowest it has been since the company was formed in 2002 – to climb back up to around 500,000. Citizens policy count reached a high of 1.4 million before the depopulation program began in 2012.

Please read the full article below;


Please call Lee from Acentria Insurance at 954-351-1960 or 054-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial, & Life, group & Financial products as well.


A Florida man was arrested last month after he was caught lying to his insurance company in an attempt to file a false insurance claim for vehicle for damage allegedly caused by Hurricane Irma, according to a statement from Florida CFO Jimmy Patronis and the Department of Financial Services’ Disaster Fraud Action Strike Team (DFAST).

Claude Milhomme filed a claim Sept. 12, 2017 to his insurance company stating water damage to his vehicle caused by Hurricane Irma in the amount of $225 for a diagnosis, after hours fee and storage fee. The Department’s Disaster Fraud Action Strike Team received a tip Oct. 9, 2017, suspecting fraudulent activity regarding Milhomme’s claim.

Please enjoy the full article below;

Please remember to contact Lee at 954-351-1960 or 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life & Financial and Group Health quotes as well.

What is MAAC-Market accountability Advisory Committee. This is a committee of 9 people appointed from various associations in Florida including FAR and FAMB. What Citizens Insurance is doing, should be doing and how to improve what Citizens does is our role. We make recommendations to the actual board of Directors of citizens of which there are also 9 people, but they are appointed by the house, senate, Governor and others who have final say as to Citizens policy including rates. Since I have only attended my first meeting on 12/12/17, my information will grow over time. What I have learned and soon more will is that Citizens is changing and it looks for the better for the consumer. Training on programs like the new managed repair program & AOB are now mandatory for all appointed agents and not doing required training will mean you cannot do business with Citizens. Also, some agents intentionally misquote policies in several ways which can hurt a consumer and make the shopping for Insurance process more complicated, this will soon be rectified as a warning system which can take away the ability to do business with Citizens. These are all steps in the correct path and need to be expedited as more is coming. For Homeowners who currently have homes built from 1979-1994, you may have Poly Pipes in your home which Citizens has been accepting if the home is 30 years or less in age. That program will cease by the spring of 2018 which will make the sale and purchase of those homes more complicated. Lastly was the topic of reinsurance. This is very complicated, but Critical for Florida as most of our Florida based Carriers do not have the money to pay for a Hurricane Irma , Andrew or Wilma and reinsurance picks up the tab. This cost is currently about 60% of your total premium so it is huge. The carriers will now be required to keep more reinsurance and the new assumption could be ,” what if Irma hit Dade county and came up through the middle of the state, what would be the financial impact”. Understanding this and knowing that not only will each carrier need more reinsurance, but the costs are also increasing after the last 2 years, means that Home Insurance rates will also be rising and it could be very significant. It is so important for every Homeowner to shop Insurance rates each year to find the best coverage you can at the best rate and in that order. if you do not have the correct coverage then your claim will not be paid properly. I know the costs are sometimes high and tough, but remember that if you cannot afford the premium, you cannot afford the claim if it happens to you. Please be smart, and safe and feel free to contact me with any questions.


Thank you,



Please call Lee from Acentria Insurance at 954-351-1960 or  954-270-7966  for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial policies and Life & Financial products as well.

The Federal Emergency Management Agency (FEMA) is seeking to recover the full $1.042 billion of its reinsurance coverage to help pay the federal flood insurance program’s losses from Hurricane Harvey. Those paid losses exceeded the minimum threshold for the NFIP’s reinsurance coverage.

Earlier this year, the National Flood Insurance Program (NFIP) transferred $1.042 billion of the NFIP’s financial risk to the private reinsurance markets, marking a key step towards a stronger and more resilient program.

In January 2017, FEMA executed the 2017 reinsurance agreement with 25 reinsurance markets representing some of the largest insurance and reinsurance groups around the globe. The 2017 placement of reinsurance will cover a portion of NFIP losses above $4 billion arising from Hurricane Harvey, saving taxpayers almost $1 billion.

Under the 2017 reinsurance agreement, reinsurers agreed to indemnify FEMA for flood claims on an occurrence basis. It is structured to cover 26 percent of losses between $4 billion and $8 billion, up to a maximum of $1.042 billion. FEMA paid a total premium of $150 million for the coverage.

On November 6, 2017, FEMA surpassed $4 billion in paid claims to insured flood survivors of Hurricane Harvey, triggering the NFIP reinsurance placement. While FEMA is working diligently to understand the full extent of losses to the 2017 NFIP, loss estimates range between $8.5 billion and $9.5 billion, which would mean that FEMA will recover the entire $1.042 billion in reinsurance. FEMA sent initial bills to reinsurers today.

Thus far, the trifecta of Hurricanes Harvey, Irma and Maria generated more than 120,000 NFIP claims, marking the second largest claims year in NFIP history. NFIP said it has paid over $6.687 billion in claims so far, with processing ongoing.

FEMA’s 2017 reinsurance placement was part of a strategy promoting private sector participation in flood-risk management. FEMA is in the process of securing a new reinsurance placement for 2018.

Please enjoy the full article below;

Please call Lee from Acentria Insurance at 954-351-1960 or 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial, & Life & Financial products as well.

An estimated 23 percent of residential and commercial properties in the U.S. are at high or moderate risk of flooding but are outside of designated Special Flood Hazard Areas (SFHA) as identified by the Federal Emergency Management Agency (FEMA), according to data analysis from CoreLogic.

Property owners living within SFHA zones must have flood insurance if there is a federally insured mortgage, while those living outside SFHA zones are not required to have flood insurance. Many property owners choose not to carry flood insurance if it is not required even though their property may still be at risk of flood.

Nationally, more than 29 million properties (29,437,151), or 23 percent, are outside a designated SFHA despite being at what CoreLogic rates as high or moderate risk of flooding. At the state level:

  • Florida has the highest number of properties in this category at 5,055,821, or 54 percent of total properties.
  • Texas has 3,292,082 properties, or 31 percent, and California has 3,114,462 properties, or 29 percent.
  • Looking at only the percentage of properties outside an SFHA, which are at high or moderate risk, Arizona has the highest at 68 percent, followed by Florida at 54 percent and Louisiana at 49 percent.

Please enjoy the full article below;

Please call Lee at Acentria Insurance at 954-351-1960 or 954-270-7966 for free information or quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life, group & Financial products as well.

The hurricane season is officially over, but it didn’t go by without leaving a major mark on Florida and its insurance industry.

Hurricane Irma, a name most in the state won’t soon forget, first hit the Florida Keys as a category 4 storm on Sunday, Sept. 10, with 130-mile per hour winds. It then worked its way north passing over the east and west coasts.

Loss estimates from Hurricane Irma have ranged between $25 billion to $65 billion by catastrophe modelers. The Florida Office of Insurance Regulation (OIR) reported total estimated insured losses at more than $5.8 billion as of Nov. 13, with more than 689,000 residential property claims and 51,396 commercial property claims. Business interruption claims reached more than 3,700 as of Nov. 3.

In the immediate aftermath of the storm, 6.7 million homes and businesses — about 65 percent of the state — were without power.

The Florida Hurricane Catastrophe Fund said the state fund that provides backing to private insurers would pay about $5.1 billion in claims. Florida estimated it had spent nearly $650 million on emergency resources and clean up from the storm.

Florida’s state-run insurer of last resort, Citizens, expects $1.2 billion in insured losses and 70,000 Hurricane Irma claims over the next 18-24 months. The carrier said Nov. 29 it had closed nearly two-thirds of the 62,000 claims it had seen so far, including more than 42,400 claims in Miami-Dade, Broward and Monroe counties.

The damage to Florida crops was also epic. According to The Associated Press, Florida Agriculture Commissioner Adam Putnam said Irma’s path couldn’t have been “more lethal” for Florida agriculture, with few crops spared. More than half of the state’s iconic orange crop is estimated to be lost.