Citizens Insurance Revamp Passes House

February 24, 2012

A measure that will change the way Citizens Property Insurance Corp pays for claims in the event of a major storm passed the House Thursday on a 89-25 vote.

The bill would reduce the assessment on coastal Citizens policyholders from 6 percent to 2 percent and eliminates it for other residential and commercial accounts. The bill would make up the loss of revenue by shifting the repayment of losses by levying emergency assessments on a wider pool of policyholders and lengthening the repayment period.

Citizens now has about $12.8 billion available to pay claims until it would be require to seek assessments to pay claims. Meanwhile, the cost of a one in 100 year storm would be $23.2 billion..

By The News Service of Florida

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Written by William Reynolds · Filed Under News