Last resort insurer Citizens Property Insurance has amassed close to $2 billion in losses due to the effects of Hurricane Irma, and it has handled well over 70,500 claims. Despite the large numbers and Irma losses, its Chief Financial Officer reassures that Citizens’ financial picture is “incredibly strong”.
There’s still about two months before we say goodbye to the 2018 hurricane season Even with that in mind, Citizens has a surplus of more than $6 billion and just over $2 billion in coverage through Florida’s Hurricane Catastrophe Fund, which aims to provide reinsurance at a relatively low cost.
Citizens is expecting just over $534 million from the aforementioned fund as well as another $126.4 million from reinsurers in the private sector. Citizens pays for reinsurance coverage to avoid having to take lots of money from its surplus. At its simplest, reinsurance is considered insurance for insurance companies.
After plowing through Florida a year ago, Florida’s Office of Insurance Regulation estimated last month Hurricane Irma resulted in roughly $10 million in insured losses. That number represents an increase from the $9.7 billion in estimated losses reported back in June.
Are you still dealing with losses stemming from Hurricane Irma or a recent storm? If you’re butting heads with your insurer, we may be able to help.
To read more about the Citizens story, please visit http://floridapolitics.com/archives/275774-citizens-touts-post-irma-financial-strength.
This information is provided by Miami insurance lawyer 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 or a property insurance disputes Miami lawyer and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.