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Homeowners will be able to discuss insurance concerns with Robin Smith Westcott, the state’s Insurance Consumer Advocate, who will be at the South Dade Government Center Thursday from 6 to 7:30 p.m.
Westcott recently questioned the wording in Citizens’ assessment notices, which warns policyholders: “I understand that I can avoid the Citizens policyholder surcharge, which could be as high as 45 percent of my premium, by obtaining coverage from a private market insurer ...” That amounts to “scare tactics,” critics say, because the likelihood that Citizens would have to make a 45 percent assessment is very remote.
But as it turns out, that language was required by recent legislation.
Such take outs by private companies are among a host of strategies that Citizens is pursuing in a bid to shed policyholders, even as it sits on a record $6.3 billion surplus with the financial wherewithal to pay out $14.04 billion in claims in the event of a catastrophe without any assessment on policyholders.
Other slim-down strategies: Citizens is creating a clearinghouse that will begin operating next year to review all policy renewals and applications for new coverage to see if they can be steered to the private sector.
Citizens’ existing policyholders will be required to take the private alternative if it’s available at the same price as Citizens’ coverage. For new policy applicants, the price must be within 15 percent of Citizens’ rates in order for them to be deflected to the private market.
Citizens is also dumping more expensive homes. Under recent legislation, Citizens will be barred from insuring homes over $1 million beginning next year. That cap that will be lowered by $100,000 annually to reduce the maximum value to $700,000 by 2017.
“Property insurance is the third rail of politics in Florida,’’ Carlos A. Lacasa said Wednesday at his final meeting as chairman of the Board of Governors Wednesday. He reflected on his performance at Citizens as having “made almost everyone equally unhappy.”
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