Gov. DeSantis Talks About Citizens Insurance’s Struggle to Stay Afloat During an Investigation!
CNS News– Governor Ron DeSantis has once again raised concerns about the solvency of state-run Citizens Insurance in Florida, as reported by NBC2. The federal government is currently conducting an investigation into Citizens Insurance over this very issue. During a discussion about Florida’s ongoing insurance crisis, Governor DeSantis highlighted that building a solution takes time, likening it to the construction of Rome.
He pointed out that seven new home insurance companies have commenced operations within the state, aiming to alleviate the burden on Citizens Insurance. These newly established companies have successfully transitioned hundreds of thousands of customers away from Citizens Insurance, according to DeSantis. He reiterated his stance on Citizens’ financial stability, emphasizing the urgency of addressing the issue.
DeSantis remarked, “It is not solvent, and we can’t have millions of people on that.” This statement by Governor DeSantis last March prompted a federal investigation into the financial status of Citizens Insurance. A senate budget committee, concerned about potential repercussions, indicated in a letter to the state that if Citizens were incapable of covering its losses, the state might need to seek federal assistance, potentially in the form of a bailout.
Gov. DeSantis addresses Citizens Insurance’s struggle for solvency amid investigation https://t.co/pSLF5NZPYJ
— NBC2 (WBBH-TV) (@NBC2) February 28, 2024
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Mark Friedlander, representing the Insurance Information Institute, emphasized that Citizens must not become insolvent due to the implications for Florida residents. He explained that in the event of a depletion of reserves resulting from storm losses, a policy surcharge or hurricane tax would be applied, initially affecting Citizens’ customers before extending to consumers statewide.
Despite the pressing issues with Citizens Insurance, Governor DeSantis, during a visit to Naples, expressed support for home-schooling students. However, he did not address questions from the media regarding the condition of Citizens Insurance. With hurricane season looming and policy premiums on the rise, homeowners are left with uncertainty and the hope for favorable outcomes.