Governor Scott Pushes for Answers on Citizens Property Insurance
Over the course of many years, there has been no shortage of discussion in Tallahassee about the status and role of Citizens Property Insurance Corporation (and its predecessors). Raise its rates or cap them? Promote depopulation or getting rid of it, or use it as a safety valve for affordable coverage?
After several years of capped rate increases and the state’s using Citizens to maintain affordable coverage in the market, Citizens is growing at an alarming rate. Governor Rick Scott has seen enough, and now Citizens to recommend ways to improve its status. Scott has even suggested that Citizens should consider whether it can sell itself to a private company. The Governor wants prompt action on these requests too, asking Citizens to address these topics at December 6 Cabinet meeting.
“I expect them to come back with ideas of things they can do without the Legislature, things that we have to go to the Legislature with,” Scott said. “We shouldn’t be sitting here just hoping every hurricane season that we’re not going to have a hurricane. Someday we’re going to have a hurricane.”
Scott added that he doesn’t believe most Floridians are aware they’ll be assessed on a wide range of policies, including auto policies, if Citizens runs short of money. “I don’t think that they have any idea that they are taking that risk of having an assessment,” Scott said. “All consumers should know that.”
“Outside of the Legislature there (are) things that Citizens can be doing on its own and I expect the board to come back and do those things,” Scott added.
Scott said he believes the Legislature would be willing to will work on the issue again in the 2012 session, even in an election year. “They know we can’t keep on doing what we’re doing on Citizens Insurance,” he said. “We’re very vulnerable as a state with Citizens.”