Scott Questions Citizens Insurance Policy
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TALLAHASSEE (CBSMiami.com) – Governor Rick Scott has made no secret of his disdain for Citizens Insurance.
Tuesday, he asked the insurer why the state-backed company was offering coverage to people who build new homes near the beach.
According to the News Service of Florida, Citizens makes it possible for homeowner to build near the ocean, but by offering coverage to the new homes; they increase the systemic risk for all homeowner’s insurance policyholders.
“If someone is going to build a new home, does it make sense for an existing citizen of the state basically to subsidize their property insurance?” Scott asked, according to the NSF. “If someone wants to build a home in an area where it is difficult or impossible to get insurance, should we be subsidizing that?”
Citizens can make some adjustments without the state legislature, but such moves only produce minor savings to the large state-backed fund.
But in a state and federal election year, the state legislature may be very reluctant to make any significant changes to Citizens Insurance, which is the only insurance available to many Floridians.