Florida's insurer of last resort extends moratorium on cancellations

[TexasTowelie]

ORLANDO, Fla. (AP) — Florida's insurer of last resort says it won't cancel any policies for the rest of the year because of the challenges facing policyholders in the middle of a pandemic.

Citizens Property Insurance Corporation said it was extending a moratorium on policy cancellations until the end of the year.

The moratorium had been set to expire in mid-August. It was implemented in March, following an uptick in premiums no being paid, as coronavirus concerns started closing down businesses and putting property owners out of work.

“Our top priority has been and will continue to be our policyholders,” Barry Gilway, Citizens Property’s CEO, said in a news release. “This extension will provide our customers with further assurances that we have their backs during hurricane season and beyond.”

Read more: https://www.orlandosentinel.com/weather/hurricane/os-ne-coronavirus-citizens-insurance-20200727-da6zfutnszaufffzs3htphei54-story.html

[NurseJackie]

1. With hurricane season upon us... I wonder if they'll be able to pay claims.

I hope they've invested wisely.

[TexasTowelie]

2. Since the state of Florida is the parent of Citizens, I believe that they may have to pay any claims

that aren't covered by their reserves or reinsurance. A number of small companies were paid to accept some of the policies from Citizens and they are relying on heavily on reinsurance since they don't have the financial strength to underwrite the policies themselves.

[iscooterliberally]

3. Citizens is a joke. They're only there to collect premiums, but if you have to file a claim...

you're screwed. My wife and I lost our home because of these useless assholes. In many cases they are the insurer of last resort. We went through an insurance agent and that was all we could get. Most of the larger insurance companies fled Florida after hurricane Andrew hit.

[TexasTowelie]

4. I don't know much about Citizens beyond the fact that they were the insurer of last result.

Here in Texas a couple decades ago there was an issue finding workers compensation coverage so the state started Texas Mutual Insurance Company. The company generally charges higher rates than what is found in the voluntary market and employers had to provide proof that they were denied coverage in the voluntary market (I think that denials had to be made by two companies in the voluntary market).

It comes as no surprise that the service in the claims department at Citizens is lackluster since the client has no options for finding coverage in the voluntary market. If the property owner has a mortgage then the banks will buy coverage elsewhere with premiums higher than either in the voluntary or Citizens.