Florida To Impose Surcharge On Homeowners To Bail Out State-Backed Property Insurer, Provide Subsidies To Those Who Live Closest To Coast
RiskProf is going to hate this story. Citizens Property Insurance Corp., Florida's state-backed insurance pool and insurer of last resort, will charge a 2 percent tax to all homeowners, apparently whether they participate in the pool or not, to make up for shortfalls in the fund. Here's a previous post about Citizens, which is receiving record applications and is on a pace to become Florida's largest home insurer. Hey, why not, when it has the power of the state to bail it out of bad actuarial moves?
You can read my mind! Seriously, this is just part of the the cost of subsidizing the higher risk homes. Hopefully, it will state on everyone's homeowners bill that this 2% surcharge is a "Subsidy to the owners of high risk homes." it will probably be hidden by some regulatory doublespeak so people won't really know what it is.