According to a recent Insurance Journal article, last resort insurer Citizens Property Insurance Corp. is expecting the number of policyholders to increase next year. This is after taking steps to get rid of some of its policies a couple of years ago. The state-run insurer anticipates more than 50,000 policyholders will defect from private insurance companies and return to Citizens.
While 2017 storms like Hurricane Irma may have put a dent on the pocketbooks of insurance companies, the increasing costs appear to be due to losses not related to weather as well as the ongoing issue with assignment of benefits (AOB), which remains a problem for the insurance industry. Insurers have, however, taken steps to address AOB losses, including refraining from writing in areas where AOB abuse is considered to be rampant.
Last year, Citizens took its own steps to tackle the problem, including instituting a $10,000 sublimit on nonweather-related water claims for policyholders who decide not to use its managed repair and preferred vendor program. These changes will go into effect in May of next year.
Citizens has taken care of more than seventy percent of claims involving Hurricane Irma. Of the more than 60,000 claims made, just under 1,500 of them had AOB attached.
This information is provided by Miami insurance attorney Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you.
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