In an article about Citizens CEO in the May 3 Miami Herald, “CEO’s salary soared as Citizens shed homeowners insurance policies,” Citizens stated that losses from water claims were 46 percent of premiums statewide and 74 percent in Miami-Dade. Those percentages appear to be at least an order of magnitude too high.
I pay almost $8,000 in annual insurance premium for a house worth $305,000 with a 5 percent hurricane deductible, which I assume is typical. Statewide that would mean about $1.8 billion in water damage losses. We need to know what Citizens got in premiums and what all their expenditures, including water claims, were.
Even if water damage claims are only 10 percent of what Citizens indicated, they are still too high.
The solution would be to hire adjusters who could inspect claims within a day, and have severe penalties for making fraudulent claims.
Depopulation is not the answer. Citizens has tried to put me with many other companies, but none of them had the A rating that Citizens does. What good does it do for Citizens to push a policy off on a company that will go bust when a major storm hits?
Eric Tullberg, Palmetto Bay