THE ISSUE OF THE CAP HAS PULLED A NOTABLE AMOUNT
OF ATTENTION FROM COUNTIES WITH HIGH VALUE
HOME AS FLORIDA. HOMEOWNERS
CONTINUE TO STRUGGLE TO OBTAIN COVERAGE.
INDUSTRY REGULATORS ARE NOW CONSIDERING THE REMOVAL
OF A $700,000 CAP ON CITIZENS
INSURANCE POLICIES.
THE INSURER OF LAST RESULT IS NOT LEGALLY
PERMITTED TO COVER MORE THAN $700,000
OF A REPLACEMENT COST.
THE ONLY EXCEPTION TO THAT, CITIZENS INSURANCE
REPLACEMENT COST LIMIT IS IN MIAMI DADE
AND MONROE COUNTIES WHERE THERE IS A $1
MILLION CAP. INSTEAD, THE ISSUE
IS THAT THE HOME COVERAGE MARKET IN FLORIDA IS
IN A CRITICAL STATE AND HOMEOWNERS ARE STRUGGLING
TO BE ABLE TO FIND ANY COVERAGE AT ALL, FORCING
THEM TO TURN TO THE INSURER OF LAST RESORT
FOR A POLICY. HOWEVER, FOR
HIGH VALUE PROPERTIES, THE
$700,000 CAP COULD BE INADEQUATE
FLORIDA. OFFICE OF INSURANCE REGULATION.
DEPUTY COMMISSIONER SUZANNE MURPHY STATED AT
A COMMITTEE MEETING FOR THE INSURER LAST WEEK THAT
REGULATORS ARE CONSIDERING WHETHER THE COVERAGE CAP
SHOULD BE LIFTED AT LEAST IN CERTAIN COUNTIES,
FLORIDA LAW WILL MAKE IT POSSIBLE
TO IMPLEMENT THE CHANGE OF REGULATORS DECIDE
THAT THERE IS NOT A REASONABLE DEGREE OF COMPETITION
WITHIN CERTAIN COUNTIES. THIS DECISION
IS WHAT MADE IT POSSIBLE FOR MIAMI DADE AND
MONROE COUNTIES TO INCREASE THEIR COVERAGE LIMITS
TO $1 MILLION.
REGULATORS ARE SEEKING TO DETERMINE WHETHER
AND WHERE CITIZENS INSURANCE SHOULD INCREASE ITS CAPS.
WHETHER THERE'S ENOUGH DATA TO SUPPORT
THAT FINDING IS WHAT WE'RE TRYING TO DETERMINE, SAID
MURPHY, WHEN ADDRESSING CITIZENS MARKET ACCOUNTABILITY
ADVISORY COMMITTEE MEMBERS THE LAST
TIME WE DID THIS WITH MIAMI DADE
AND MONROE, IT WAS PRETTY CLEAR AND
I THINK THAT THE DATA THAT WE'VE LOOKED AT THUS FAR IS
NOT AS CLEAR AS IT WAS YEARS AGO,
CLIENTS CAN'T EVEN SQUEEZE INTO CITIZENS
INSURANCE EVEN THOUGH THEY WANT TO OR NEED TO,
SAID SOUTH FLORIDA INSURANCE AGENT AND
COMMITTEE MEMBER LEE GORDIEVSKY. THE
OUTCOME OF THAT, FOR INSTANCE, WAS THAT
PROPERTY OWNERS NEEDED TO SEEK WHAT IS CALLED SURPLUS
LINES COVERAGE, WHICH IS A TYPE OF COVERAGE
WITH A CERTAIN LACK OF REGULATION AND THAT FREQUENTLY
INCLUDES A HIGHER NUMBER OF CONDITIONS ON POLICIES.
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