Homeowners insurance in Florida: the ugly surprise located just below the surface!

Daytona Beach News Journal ran a story on August 7, 2008, written by Bob Lotane called "can secure v. State solvency rates: overreaction created a crisis?"

The article highlights the enormous risk and financial implications associated with secure homeowners in Florida who are now directly on the backs of Floridians.

And quite frankly article points out some shocking realities to Florida real estate and property insurance that very few people are paying a special attention to:

Executives of insurance of Florida citizens to the legislature of the Florida in 2008, the fees required by the citizens property insurance corporation are far short of what is considered to mathematically proper.Thinly capitalized takeout companies approved to take Florida home insurance Florida citizens.  Companies have no management experience to manage the aftermath of a Florida hurriance.  To make worse, companies have to keep their rates at or below the Corporation.Finally of the citizens property insurance rates few public realize the magnitude of chaos currently affecting the global financial markets.  Not long ago, the State of Florida had difficulty to close an agreement of Fund CAT bond for $625 million in English that means they weren't enough investors willing to lend to the Florida Hurricane catastrophe fund.  If the State of Florida had problems to sell a bond issuance for an amount of $ 625 million, do you think it will happen if they have to raise more?  Don't forget: the Florida Hurricane catastrophe fund is on the hook for $ 29 million today.

So where this leave you - Florida home owner and Florida entrepreneur?

First if you are in the insurance of citizens is to see if you can get find private Florida safe owners alternative to insurance of the citizens of Florida.

Home insurance buyers guide can help you find, screen and contact Florida owners insurance companies still writing new business in your area.

Use the insurance buyers guide of Florida home to decide if you want to allow your Florida home insurance policy with the citizens of Florida insurance to withdraw by a Florida thinly capitalized home insurance company.

Finally, involved with Crisis insurance of homeowners from Florida and let your legislators know your opinion of the unstable financial situation of the Florida home owners insurance market.

source