The occurrence of storms in the state of sunlight is always considered natural by most people. But the damage caused by hurricanes has caused many private insurance companies not to offer policies that provide sufficient insurance protection. Therefore, Citizens Property Insurance Corp. was established.
A state-run insurance company, Citizens Property Insurance Corp offers protection of up to $350,000 of total damage and repair costs. Citizens Property Insurance Corp also includes buildings other than the actual house and its contents and liabilities.
Impact of the storm on Citizens Property Insurance Corp
The recent occurrence of four storms - Charley, Frances, Ivan, and Jeanne - in Florida has caused Citizens Property Insurance Corp to have a total net loss of $1.77 billion. As a result, Citizens Property Insurance Corp. raised premium prices based on their wind storm policy. The increase in Citizens Property Insurance Corp's premium is projected to reach 67 percent.Being the largest insurance company in the state of Florida, changes in the premium price policy of Citizens Property Insurance Corp can cause other small insurance companies to increase their premiums.
After four storms, Citizens Property Insurance Corp was abandoned with almost 92,000 claims, whose numbers are expected to increase in the next few months. To compensate for all these claims, Citizens Property Insurance Corp increased their yields by an average of 11.9 percent.
Citizens Property Insurance Corp. will get the biggest bite from Hurricane Charley with a loss of $925 million, according to the Risk Management Solution. The next to make a hole through Citizens Property Insurance Corp. is Hurricane Jeanne at a cost of up to $332 million. Hurricane Frances and Ivan will also take a total loss of $532 million from Citizens Property Insurance Corp. insurance funds.
How's about Citizens Property Insurance Corp now?
Currently, Citizens Property Insurance Corp. has a surplus of almost $1.2 billion, not including an additional $40 million of monthly premium income. However, even with this money, Citizens Property Insurance Corp. is still unsure whether they will experience a deficit or they must judge. If Citizens Property Insurance Corp runs out of funds, other state insurance companies will be assessed. Citizens Property Insurance Corp will then provide these fees to their customers through these companies.Citizens Property Insurance Corp. can assess all property insurance and accident companies, except workers compensation and medical malpractice. The Citizens Property Insurance Corp's rating might be 2 percent of the premium charged by each company. If the premium price is $1,000, a 2 percent rating will cost around $20. https://bit.ly/2PW0arC