Monday, August 07, 2006

Florida Insurance Crisis

Since, Hurricane Andrew, Florida has been in property insurance mess despite legislators attempts to fix it. With home and condo insurance soaring, with customers being dropped or coverage being slashed, many Florida's are wondering if they can afford to stay in Florida. $715 million in tax money has been allocated toward the $1.7 billion deficit at state run Citizens Property Insurance, Florida largest insurance company. Florida homeowners will be on the hook to pick up the rset of almost $1 billion. Legislators have allowed 10% increase in insurance premium without state approval which has cleared the way for drastic price increases for Citizen's customers. During the next 12 months people will see their homeowners-insurance bills more than double. There is a debate about how long will legislators bail out the insurance companies. Many people think the insurance companies need to take a loss, since, this is the business they are in. To read more about "Coverage Costs Soar Out of Reach", please visit Orlando Sentinel.