Water-Loss Claims Hurt South Florida Homeowners
According to an August 25, 2015 article in the Sun Sentinel, South Florida Citizens Property Insurance Co. customers will see a rate increase in their homeowners’ insurance rates. The insurance company stated that South Florida policy holders must pay for the increase in water-loss claims in the region. Citizens pointed out that Miami-Dade, Broward, and Palm Beach counties had a “disturbing rise in water claims and litigation,” which leads many to believe that this is a result of fraudulent claims. Citizens CEO, Barry Gilway, stated that “When you take a look at Miami-Dade and you take a look at the rest of the state, there’s really no major differences in age of the home or frankly, virtually any other characteristic,” which concludes that “there is more fraud.”
According to Gilway, “Water losses are the major reason Citizens is seeking rate hikes for the upcoming year, especially in South Florida. Were it not for water loss, even South Florida policy holders would see rate reductions.” Citizens pointed out that the other counties in the state of Florida will see a rate decrease in their Citizens homeowners insurance.
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