We are constantly bombarded with letters from newly established so-called insurance companies advising that we will be subjected to surcharges if we don’t change from Citizens to their companies. To make matters worse, Florida has allowed this to be an automatic change unless we “opt out.”
A cursory review of these companies reveals that they are fairly new, often with officers who aren’t experienced in the property-insurance business. None appears to be rated by Best or any other commonly accepted insurance rating company.
Some look more like hedge funds than insurance companies, and most are operating from foreign jurisdictions.
I wonder how many of these companies have failed and, when they do, what has happened to their clients’ claims? How many have friends in state government and will they be around when a hurricane truly hits? The state fund now has $17 billion in reserve, yet the administrators continue to buy unnecessary back-up insurance.
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Who is profiting from all of this to the detriment of the homeowner and taxpayer?
Angela S. Brown, Miami