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Originally Posted by RickFLM4
The state of FL sets Citizens' rates because it is a state entity, created to fill the void of insurance companies that don't want to write policies in some areas. There is no one else to set its rates so the state will always set the rates for Citizens, somewhat like FEMA setting federal flood insurance rates.
As for other insurers, FL does not set the rates for them. It exercises regulatory oversight / approval to ensure compliance with actuarial standards and statutory provisions, similar to other states like Ohio.
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Above you said "Other insurers set their rates and the state must approve them..." - I thought this meant the state had to approve the rate.
Seems like the "don't want to write policies in some areas" is at least partly caused by the rate increases capped and at 1.2 million homes with citizens (roughly 15% in FL) I would expect at some higher rate the 1.2 million would go down.
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In many areas of the state, Citizens’ premiums remain well below private-market company premiums. That’s because, unlike private insurance companies, Citizens' rate increases are capped by law.
Since 2010, those capped rates have not kept pace with increases in the private market. In areas like Miami-Dade County, Citizens’ rates would need to increase by 82% to reach competitive levels with private carriers.
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As for the "we don't pay state income tax", only way to compare the cost of living between two places is to compare everything. Income tax, sales tax, toll roads, housing costs, pay, where in FL, the list goes on and on.