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Citizens Target Of Lawsuit Alleging Overcharging

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(Photo by Joe Raedle/Getty Images)

(Photo by Joe Raedle/Getty Images)

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South Florida Crime

FORT LAUDERDALE (CBSMiami) – Citizens Insurance is the target of another class action lawsuit that alleges the insurance company, backed by taxpayers, has been deliberately overcharging customers.

The latest suit alleges that Citizens illegally removed discount credits for storm shutters and other hurricane protection in order to intentionally drive up rates.

“A company spokesperson said Citizens has been operating under the law and that the reinspections came after regulators changed the mitigation criteria. Our position is Citizens’ re-inspections were conducted under statutory authority afforded any insurer to verify, at the insurer’s expense, the accuracy of inspection reports submitted for a mitigation discount,” spokesman Michael Peltier told CBS4 News partner the Miami Herald.

The new suit comes just one day after CBS4 Investigator Al Sunshine revealed that Citizens is also the subjects of a separate suit that alleges some of the company’s software may have intentionally overcharged customers.

Citizens has drawn criticism lately for lavish trips by executives and other inflated expenses. At the same time, Citizens has been pushed to depopulate thousands of customers and send them to private insurers to lessen the liability on taxpayers.

Citizens is one of the largest providers of property insurance in South Florida and often the insurer of last resort when private insurance companies raise rates to unsustainable levels for homeowners.

  • Click here for more information about the new class action lawsuit.
  • Click here to read/watch Al Sunshine’s report about Citizens Overcharging
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