What kind of shape is Citizens Property Insurance Corporation in after a devastating hurricane season?
After Milton, Helene and Debby, all in a matter of months, homeowners are worried about Florida’s insurer of last resort. But Michael Peltier of Citizens says it will always be able to pay claims. That’s because the insurer can put an extra charge on the insurance policies of most Floridians to help it cover its costs. But Peltier says he doesn’t think it will come to that this time.
“Citizens is in a very strong financial position right now," he said. "We have the financial resources on hand to handle claims, not only from Milton but from Helene without the risk of having to levy assessments or surcharges on either our policy holders or other Florida insurance consumers.”
As of Thursday, the state Office of Insurance Regulation was reporting $2.3 billion in estimated insured losses for Milton. For Helene, it was $1.3 billion. And for Hurricane Debby, it’s $131 million.
Peltier says the state-backed insurer was set up in a way that will always work.
“Citizens will always have the ability to pay claims," he said. "If we exhaust our reserves, our reinsurance coverage and other protections …the Florida Hurricane Catastrophe Fund, for example, we are required to levy surcharges on our policyholders first. And if there’s still a deficit, then we are required to levy assessments on all Florida insurance consumers – or most of them, anyway.”
Additionally, state leaders say Helene and Milton did less damage than initially feared.
