FL: Citizens Drops Insurance Policies

Okay, found the article I mentioned in a post somewhere in all these Housing Decline posts :point_up_2:. Again, in the Florida Keys, all Reinsurers have jumped overboard on the sinking ship of Florida Keys real estate. It’s not only here, but any place in Florida where homes are built on the water or very close to the water.

Citizens is a GSE (government sanctioned enterprise) and it took the place of numerous homeowner insurance companies which have bailed on insuring anything close to the water.

After Irma, Citizens had to pay out more claims than it held in reserve. They raised rates double digits in the Keys. Then we had smaller hurricanes hit the armpit of Florida’s panhandle. And that caused Citizens to raise rates again and go begging to Ron DeSantis, who, believe it or not, ponied up a bailout because he knew the MAGA folk are big on beachfront property. Then Citizens placed a $700k cap on mainland homes and $1 Million caps on Keys homes. And still, Citizens just dropped insurance for 2,267 homeowners as noted in the Miami/Ft. Lauderdale press just this weekend. So when the “Insurer of Last Resort” will no longer insure you, who you gonna call? Read on to see what some homeowners are forced to do:

Miami Herald/Sun Sentinel Headline:
Hundreds of Citizens policies dropped after home values exceeded $700,000 cap



Unlike a home’s market value that measures how much money you could get by selling your home and the land it sits on, replacement values measure what it would cost to replace a structure. While a hot real estate market can drive up a home’s asking price, replacement-value increases are a result of inflation driving up costs of building materials, energy and labor.

Customers who remain eligible for Citizens coverage are paying higher premiums because of the increases.

But owners who find their homes are no longer eligible for Citizens are often forced to go without insurance, or if they still have mortgages, accept force-placed coverage from their mortgage servicer or buy much-pricier coverage from excess and surplus lines carriers like Lloyds of London.