Florida Democrats sound the alarm as hurricane season collides with property insurance

SALEM GOING TO HAVE HIS RESPONSE TONIGHT AT 6. >> WE ARE IN HURRICANE SEASON NOW AT A PROPERTY INSURANCE CRISIS HERE IN FLORIDA. FORECASTERS BELIEVE THIS ULD BE O OF THE WORST SEASONS IN DECADES, WHICH HAS SOME EXPERTS WARNING THAT A DIRECT HIT FROM A MAJOR HURRICANE COULD BANKRUPT THE STATE RUN. PROPERTY INSURANCE COMPANY NEWS 4 JAX CONSUMER INVESTIGATOR, TIFFANY SALIVATE DEBUNKS THAT CLAIM. SHE HAS A LOOK AT WHAT THIS HURRICANE SEASON MEANS FOR HOMEOWNERS. >> FLORIDA'S INSURANCE MARKET IS SHOWING SIGNS OF IMPROVEMENT. >> BUT A MAJOR HURRICANE COULD CHANGE THINGS. WE ARE IN A COST OF LIVING CRISIS. THAT'S WHY FLORIDA DEMOCRATS MET THIS MORNING DISCUSSING THE LOOMING THREAT OF HURRICANE SEASON. >> TT COD ELL D NE FOR FLORIDA HOMEOWNERS, JACKSONVILLE CITY COUNCILMAN ROCKMAN JOHNSON JOIN THE CONVERSATION. WE ARE ALSO FACING IN THIS STATE AND SPECIFICALLY IN THIS CITY AND ACUTE AFFORDABLE HOUSING CRISIS. >> IN JACKSONVILLE, OVER 30% OF OUR RESIDENTS BEEN MORE THAN HALF OF THEIR INCOME ON JUST HOUSING. AND THAT COMBINATION OF HIGH HOUSING COSTS. THE DAMAGE FROM HURRICANES EXACERBATE THE CRISIS. CITIZENS IS THE STATE'S LARGEST PROPERTY INSURER CREATED IN 2002, THE INSURER WAS SUPPOSED TO BE A LAST RESORT OPTION R PROPERTY OWNERS WHO COULDN'T FIND COVERAGE IN THE PRIVATE MARKET IN THE EVENT OF A MAJOR HURRICANE, STATE LEADERS WARNED THAT CITIZENS CLAIMS PAYING FUN. >> COULD BE EXHAUSTED. WE ARE ONE BAD HURRICANE AWAY FROM BANKRUPTING OUR STATE CITIZENS HELD 1.2 MILLION POLICIES AS OF APRIL. THAT NUMBER INCLUDES AROUND 40,000 JACKSONVILLE AREA, HOMEOWNERS. NOW WE ASKED NON-PARTISAN PARTY TO HELP US MAKE SENSE OF THOSE NUMBERS. >> HE TELLS US THAT THE NUMBER OF POLICIES THE STATE RUN ENSURE HAS IT'S NOT IDEAL. >> THEY HAVE A LONG WAY TO GO TO GET TO WHAT THEY CALL MANAGEABLE RISK. THAT WOULD BE ABOUT 400,000 TO 500,000 TOTAL POLICIES. MARK FREELANDER WITH THE INSURANCE INFORMATION INSTITUTE SA >> CITIZENS IS OVEREXPOSED, BUT >> CONSUMERS DON'T NEED TO WORRY ABOUT THEIR CLAIMS GOING UNPAID. THIS HURRICANE SEASON. THE BOTTOM LINE IS CITIZENS COULD NEVER GO BANKRUPT LIKE A PRIVATE INSURER IS DECLARED IN SOUTH. IT'S NOT POSSIBLE. >> BUT THE HURRICANE TAX IS A POSSIBILITY. WE DON'T SEE IT EVER AGAIN. BUT IT'S A WORST CASE SCENARIO. ONLY AND IT WOULD ALLOCATE FUNDS TO CITIZENS TO PAY OFF ITS CLAIMS. BUT BANKRUPTCY IS A REALLY STRONG TERM. AND THAT'S JUST ABSOLUTELY IMPOSSIBLE. TIFFANY CELLMATE CHANNEL 4, THE LOCAL STATION. >> IF YOU'RE WONDERING WHEN HURRICANE TAXES, IT'S A BACKSTOP FOR CITIZENS INSURANCE TO ENSURE THE STATE INSURED DOESN'T EVER RUN OUT OF MONEY. CITIZENS IS REQUIRED BY LAW TO TAX ITS CUSTOMERS. IF FUNDS SET ASIDE TO PAY CLAI HA BEEN EXHAUSTED AFTER A MAJOR STORM. AND THAT MEANS CUSTOMERS COULD BE

Channel: News4JAX The Local Station

Views: 68,420

Keywords: Affordable Housing, Citizens Property Insurance, Florida, Hurricane, Property Insurance, Hurricane Season, property insurance, property insurance premium, property insurance law

Id: kcEMXYOx-kc

Length: 3min 1sec (181 seconds)

Published: Wed Jun 05 2024