5/30/2012
Orlando Sentinel
TALLAHASSEE — Florida Insurance Consumer Advocate
Robin Westcott
has released a new-and-improved ”assessment calculator”
designed to provide a friendly reminder to those of you
who purchase insurance that if a catastrophic hurricane
strikes, we are totally screwed.
For those of you living in post-2005 homeowner bliss,
Florida has three insurance entities that can smack you
with assessments if the state is hit by a major storm
and the funds are unable to cover claims — the Florida
Hurricane Catastrophe Fund (which sells cheap
re-insurance to insurance companies), Citizens Property
Insurance Corporation (the state-run insurer that has
nearly 1.5 million policies) and, the Florida Insurance
Guaranty Association (they do something else
insurance-y).
The online calculator,
which you can access here, allows you to enter
the annual premium you pay for your home, autos and
businesses, and then — like algorithmic magic! — out
pops the quantification of the screwing. In my case, I
would get hit with a $1,400 assessment by a 1-in-100
year storm, which figures to be about $150 annually. But
I live in Tallahassee away from the coast and don’t buy
insurance from Citizens, whose policyholders get hit
with higher assessments to make up shortfalls within the
company. If I were a Citizens policyholder, my total
assessment would top $1,900 — or roughly $200 annually.
“In meeting with insurance consumers across the state,
it was clear that many Floridians did not recognize the
potential for assessments following a storm if Citizens,
the Florida Hurricane Catastrophe Fund or the Florida
Insurance Guaranty Association does not have the
capacity to pay claims,” Westcott said in a statement.
“Educating consumers is an important part of my duty as
Consumer Advocate, and I believe this updated tool will
serve as a valuable consumer resource going into the
2012 Hurricane Season.”
Thanks for the pep talk!