ASKED TO CALL 9-1-1. IT’S NOW TIME FOR THE WEEKLY WITH NEWS 6 MORNING ANCHOR JUSTIN
WARMOTH.
>> THIS IS THE WEEKLY ON
CLICK, ORLANDO DOT COM WITH
JUSTIN WARMOTH.
>> GOOD MORNING. I’M JUSTIN
WARMOTH. WHEN LAWMAKERS LEFT
TALLAHASSEE A FEW WEEKS AGO
FOLLOWING THE STATE’S
LEGISLATIVE SESSION, THEY
FAILED TO ADDRESS THE MAJOR
INSURANCE CRISIS IMPACTING
HOMEOWNERS ACROSS THE STATE.
PREMIUMS ARE SKYROCKETING AND
POLICIES ARE BEING DROPPED
THIS MORNING, TOM COTTON, THE
OWNER OF HUGH COTTON INSURANCE
IN ORLANDO IS HERE TO BREAK
DOWN. WHAT GOT US IN THIS MESS
AND EXPLAIN WHAT YOU SHOULD DO
TO PROTECT YOUR HOME. WHAT IS
CAUSING THIS CRISIS RIGHT NOW.
TO PROTECT YOUR HOME. WHAT IS
CAUSING THIS CRISIS RIGHT NOW. Greatness Lives Here. >> WELL, THE CRISIS AND THE
HOMEOWNERS INDUSTRY IS NOTHING
NEW WAS IN SOME BEEN BOILING.
>> REALLY, FOR IT FOR YEARS
AND THAT WE JUST KEEP KICKING
THE CAN DOWN THE ROAD. BUT THE
CRISIS THAT WE’RE FACING NOW
ISN’T THE LAST 2 YEARS,
HOMEOWNERS CARRIERS DOING
BUSINESS IN THE STATE OF
FLORIDA HAVE HAVE HAD 3.5
BILLION DOLLARS IN 3.5 BILLION
DOLLARS. AND THAT’S WITHOUT
THERE BEING A MAJOR STORM
ACROSS THE COASTLINE AND STATE
FLOOR. WE HAVE IN FLORIDA IN
ACROSS THE COASTLINE AND STATE
FLOOR. WE HAVE IN FLORIDA IN Greatness Lives Here. 2021, THERE WERE 117,000
PROPERTY CLAIMS FILED FOR
CAGE. LAWS FILED FOR
PROPERTY CLAIMS FILED FOR
CAGE. LAWS FILED FOR Greatness Lives Here. PROPERTY HOMEOWNERS. PROPERTY
CLAIMS 117,000 IN THE STATE OF
FLORIDA. IN THE OTHER 49
STATES, THERE A K 900
LAWSUITS. SO WHERE WHAT?
117,000, THEIR VIOLENT, LIKE
THREES AS THE DAY. SO UP
LITIGATION IS WAS DRIVING
YEAH, I MEAN, I KNOW THAT THIS
HAS BEEN SOMETHING THAT NEEDS
THAT IS NEEDED TO BE ADDRESSED
FOR YEARS NOW. BUT WHY ARE
FOLKS SEEING?
>> THE DRAMATIC RISE IN
PREMIUMS. IS THIS JUST THE
CULMINATION OF NOTHING BEING
ADDRESSED AND THEN THIS IS
THAT THIS IS THE YEAR WHERE
IT’S GOING UP BY THESE LARGE
NUMBERS.
>> WELL, THAT’S A GREAT
QUESTION COLD IN NATION OF
THINGS DREW IN OVER A LONG
PERIOD OF TIME. RATES HAVE
BEEN SUPPRESSED. ALL CARRIE OR
2 TO A BUSINESS FLORIDA. THEY
HAVE TO FILE THEIR FOR GETTING
THE COVERAGE CONTRACT THAT
THEY WISH TO THERE ARE A
SEPARATE IMPROVED BUT STATE OF
FLORIDA, THE STATE IS VERY
STRANGE AND THE RICH, THEY
WILL APPROVE. ALSO, FLORIDA
HAS AN EXCESS PROFITS LAW. SO
YOU THINK THAT WHAT KERRY OR
ABC INSURANCE COMPANY THAT
DOES BUSINESS A PART OF THE
WRIGHTS HOME AND AUTO BUSINESS
THAT THEY TAKE A BEATING IN
OUR OVER BEATING AT HOME
INSURANCE TO MAKE PROFIT
ELSEWHERE. THAT’S NOT THE
MARTIN HAS AN EXCESS PROFITS
LAW, BUT SO THE CARRIER HAS
REALLY GOOD YEAR. HAVE TO GIVE
LIKE AND A CARRIER HAS A GREAT
HERE AT HOME ORDERS. BOTH
THOSE THOSE PREMIUMS ARE
RESTRICTED. SO YOU TAKE
DIFFICULT.
RESTRICTED. SO YOU TAKE
DIFFICULT. Greatness Lives Here. >> ADMINISTRATIVE ENVIRONMENT
THAT THE CARRIERS HAVE TO
SUBMIT THEMSELVES TO AT THAT.
YOU HAD CLAIM ENVIRONMENT
WITH.
>> FEWER CARRIERS, WRITING
WALLS BARRIERS THAT ARE
FINANCIAL PERIL CARRIERS IN
YOUR SUPPLY CHANGES SEVERAL
LAW SUPPLYING THEM. YOU KNOW,
YOU’VE GOT 150 CARRIERS. ALL
INSURANCE IS GOING TO BE THE
BETTER THAT SHE WOULD. YOU
ONLY GOT A HANDFUL. IT’S GOING
TO BE EXPENSIVE. GOT ALL THAT
WITH RISING A RECONSTRUCTION
COST OF HOLES. THAT’S WHAT
DRIVES THE RATE INCREASE. GOT
IT.
>> HOW DOES THE SURFSIDE CONDO
COLLAPSE PLAY A ROLE IN THIS?
>> HOW DOES THE SURFSIDE CONDO
COLLAPSE PLAY A ROLE IN THIS? Greatness Lives Here. >> NOT AS FLORIDA HOMEOWNERS
MARKET. YOU KNOW THE BILL
MARKET IS SOMETHING COMPLETELY
DIFFERENT. COASTAL CAUGHT
MARKET IS SOMETHING THAT WE
HAVE VERY LIMITED EXPOSURE TO
MYSELF AS AN AGENT SIMPLY
BECAUSE THAT’S NOT ANYTHING WE
WANTED TO REALLY GET INVOLVED.
IT. THAT’S NOT TO SAY THAT WE
DON’T SHARE OF THOSE. WE
CERTAINLY DO IT WAY AND
COMPLEX IS OFF. THE COAST MANY
AND COMPLEX HERE IN CENTRAL
FLORIDA. IT’S JUST WE DON’T
HAVE A BIG BOOK OF THAT, BUT
IT’S GET THIS GOING TO BE A
LEGISLATIVELY THROUGH THAT
ISSUE. THERE IS TO HELP WE
ALREADY HAVE TO BE INSPECTED
OR HAVE A VALUATION EVERY 2
YEARS NOW IT’S GOING TO BE A
MATTER OF. THE STATE MANDATE
INSPECTIONS, I THINK. BUT IT’S
NOT JUST NOT DRIVING THE YEAR.
>> ALL RIGHT. SO LEGISLATIVE
ACTION WAS NOT TAKEN DURING
THIS LAST SESSION. WHAT
IDEALLY NEEDS TO HAPPEN? IS
THIS A FULL OVERHAUL?
IDEALLY NEEDS TO HAPPEN? IS
THIS A FULL OVERHAUL? Greatness Lives Here. >> NO OVERALL. IT’S A PROBLEM.
PROBLEM ISSUE THAT’S BEING
ADDRESSED. WHAT I I GREW UP
RIGHT HERE IN CENTRAL FLORIDA,
62 YEARS. I’VE NEVER LIVED
BLOCK FROM WHERE I’M SITTING
RIGHT NOW. MY PORCH, ALWAYS A
BUILDER. HAS IN FLORIDA
RIGHT NOW. MY PORCH, ALWAYS A
BUILDER. HAS IN FLORIDA Greatness Lives Here. THE WATER STARTED CALLING OLD
WAS BAD FOR YOU. THEY STARTED
THIS CRAZY LITIGATION AND YOU
SAW CHURCH COMPANIES ADAPT BY
LIVING OR EXCLUDING EXPOSURE
TO MOLD SPORES VIRUSES,
BACTERIA THAT SORT THAT TOPIC
WAS WATER WATER EACH THE FRAUD
EXPLODED IN THE WATER AREA AND
THE RESTORATION AREA SOLDIER
STRONG. THESE LIMITED. NOW YOU
HAVE CARRIERS THAT EITHER
EXCLUDES WATER LOSS ALTOGETHER
OR LIMITED TO $10,000. NOW,
THE PROBLEM IS GROUPS. AND
PEOPLE WERE TREATING THEIR
HOMEOWNERS POLICY AS A
WARRANTY POLICY FOR OF WHEN
YOU BUY ALL YOUR HOME,
CONSUMABLES. YOUR PLANTS ARE
GOING TO LAST FOREVER. ROUTE
IS ONLY GOING TO HAVE A 20 TO
30 YEAR LIFE. SO WHAT A 25
YEAR-OLD ROOF IS DAMAGED BY
STORE. IT WASN’T NECESSARILY
THERE. IT WAS. A STORM WAS BAD
AS IT WAS BECAUSE THE ROOM WAS
FULL AND YOU’RE GETTING A
BRAND NEW ROOF. FOR THAT. SO
THE FIX IS ONE OF THE
PROPOSALS THAT SENATOR BOY
WHAT YOU WROTE, THE BILL WAS
TOO. THEY ACTUAL CASH VALUE.
WHAT YOU WROTE, THE BILL WAS
TOO. THEY ACTUAL CASH VALUE. Greatness Lives Here. OKAY. RIGHT NOW IF YOU HAVE
DAMAGE TO YOUR ROOM THAT IT’S
5 YEARS OLD GET A NEW ROOF,
DREW. HE’S 25 YEARS OLD. YOU
GET A BRAND NEW ROOF. SO THE
PROPOSAL WAS THAT A GET OUT
PARAPHRASE HERE JUST A LITTLE
BIT. SO REMEMBER THE EXACT
WORDS BILL, BUT IF YOUR ROOF
LIKE 8 YEARS OR LESS, WILL GET
YOU GOING TO IT. IT WAS LIKE 8
TO 12 WILL GET 60% 12 TO 17
YEARS OLD. YOU’LL GET 40% SO
YOU EAT. THEY REPLACE WHAT YOU
ACTUALLY LAUNCH. JAY, 20
YEAR-OLD TROOPS DAMAGE. YOU
DIDN’T LOSE A BRAND ROOF. THE
LOSS OF 20 YEAR-OLD ROOF OF
THE VALUE THAT ONE OF YOUR
ROOF IS THE VALUE. THE
EXCEPTIONS OF THE PROPOSAL
WAR. IF YOUR ROOF IS DAMAGED
BY HURRICANE REGARDLESS OF
AGE, YOU WOULD STILL GOING
READ IT. ROOF. AND IF YOUR
HOUSE WAS A TOTAL LOSS DUE TO
CATASTROPHIC GROUND COLLAPSE,
WHAT YOU WHAT I CALL TRACK
CALLS A CATASTROPHIC COLLAPSE
FOR FIRE AND YOU WOULD STILL
GET RID OF PART OF A LOT OF IT
WAS THAT YOUR LENDERS REQUIRE
FOR REPLACEMENT KOCH. THERE
WERE SOME CHALLENGES THERE. SO
THE LEGISLATURE REALLY NEEDS
TO ADDRESS IT MAKES IT THEY I
THINK YOU’LL SEE THE
RESPONDING RESPONSE SLOWLY,
BUT THE MARKET WILL OPEN UP.
>> THEY DIDN’T. AND SO A
SPECIAL SESSION NOW IS ON THE
TABLE NOW. A DATE HAS NOT BEEN
SET FOR THAT, BUT IT SEEMS
LIKE THE GOVERNOR’S LEADING UP
TO LAWMAKERS TO SET A DATE BUT
IS EYEING LATER THIS YEAR. IS
THAT TOO LATE? DOES THIS NEED
TO BE ADDRESSED RIGHT NOW,
ESPECIALLY WITH HURRICANE
SEASON APPROACHING IN JUST A
FEW MONTHS?
>> WELL, WE CERTAINLY HOPE IT
WOULD HAVE BEEN ADDRESSED. AND
WHEN THE WHAT I READ IN THE
PAPER THAT THERE MAY BE A
SPECIAL SESSION ON THE
DISTRICT BEING TEXTED MY
CONTACTS AND NOW ASKING THAT
THEY ARE CHANCE WE’RE GOING TO
PROPERTY TIED INTO THIS AND
THE ANSWER AND THIS IS COMING
STRAIGHT FROM PEOPLE TO TALK
TO THE GOVERNOR’S OFFICE EVERY
DAY. NOTE, THIS IS NOT GOING
TO HAPPEN. SO I TEXTED BACK
TO, YOU KNOW, WHAT ARE OUR AND
I SAID THAT WHAT THE CURRENT
HOUSE LEADERSHIP IS NOT GOING
TO HAPPEN. SO AGAIN, ANSWER
THAT I GOT FROM TALLAHASSEE
DIRECTLY YESTERDAY WAS WHEN
THEY IN THE NEW HOUSE SPEAKER,
WHICH WILL BE IN NOVEMBER AND
THERE WILL BE A SPECIAL
SESSION ON PROPERTY PRIOR TO
THE REGULAR LEGISLATIVE
SESSION IN 2023. THAT’S WHAT I
WAS TOLD YESTERDAY. OBVIOUSLY
A LOT CAN CHANGE, PEOPLE OUT
THERE KNOW THAT WE HAVE A
PROBLEM. WE ONLY GET IT SINCE,
YOU KNOW, PLAY
PROBLEM. WE ONLY GET IT SINCE,
YOU KNOW, PLAY Greatness Lives Here. >> AND AS WE OFTEN SAY, IT
ONLY TAKES ONE STORM. COMING
UP. WHAT COULD HAPPEN TO THE
INSURANCE MARKET IF CENTRAL
FLORIDA’S IMPACTED BY A MAJOR
HURRICANE THIS SEASON? PLUS,
WHAT YOU SHO
>> THIS IS THE WEEKLY ON CLICK, ORLANDO DOT COM WITH JUSTIN WARMOTH. WELCOME BACK.
OUR TOPIC THIS MORNING,
FLORIDA’S PROPERTY INSURANCE
CRISIS, HOMEOWNERS ALL OVER
THE STATE. SEEING THEIR RATES
JUMP SOMETIMES MORE THAN
DOUBLE OR WORSE. THEY’RE
GETTING DROPPED ALTOGETHER. IT
APPEARS LAWMAKERS WANT TO
ADDRESS THE PROBLEM UNTIL
LATER THIS YEAR. BUT WHAT
HAPPENS OF CENTRAL FLORIDA’S
IMPACTED BY A MAJOR HURRICANE
BEFORE THEN, TOM COTTON, OWNER
OF HUGH COTTON INSURANCE HAS
THAT ANSWER? PLUS, SOME TIPS
FOR HOMEOWNERS. IF WE DO GET
THAT STORM THIS YEAR.
>> WHAT DOES THAT LOOK LIKE?
IS THAT A FULL-ON COLLAPSE?
>> WHAT DOES THAT LOOK LIKE?
IS THAT A FULL-ON COLLAPSE? Greatness Lives Here. >> THAT’S A GREAT QUESTION.
AND WE HAVE WE HAVE A LITTLE
SAYING OURSELVES, THOSE OF US
THAT ARE ACTIVE IN, YOU KNOW,
THE INSURANCE BUSINESS AND
ACTIVE IN POLITICS IS NO. THIS
IS A GREAT PLAN. IF THE WINDS
DON’T BLOW OKAY OF THE WIND
BLOWS EVERYTHING CHANGES LIKE
MIKE TYSON ALWAYS SAID
EVERYONE HAS A PLAN GET
PUNCHED IN THE NOSE SO SAME IS
TRUE. WE CERTAINLY PRAY
FLORIDA WILL NOT SUFFER ANY
CONTEST FOR YEARS BECAUSE
RIGHT NOW OUR CARRIERS
CARRIERS IN AGAIN WATCH LAKERS
WERE TALKING ABOUT THE
HOMEOWNERS THEY WERE NOT
TALKING ABOUT THE INSURANCE
INDUSTRY IN GENERAL NOT ARE
SCARCE. WE’RE PAST THE TIPPING
POINT. WE HAVE A LOT OF
CARRIERS AND VERY PRECARIOUS
POSITIONS. ALL RIGHT. CARRIERS
THAT WE KNOW WHERE THEY DO.
BUSINESS STATE MEASURE THAT IN
PRE. BUT TO DO BUSINESS IN
FLORIDA, THE LAW REQUIRES THAT
YOU HAVE A CERTAIN ABOUT
SURPLUS SUPPORT THAT PRETTY
SURPLUS IS YOUR ABILITY TO PAY
CLAIMS AND THEY MEASURE THAT
IS YOUR PREFERRED. THE SURPLUS
RATIO. WHY THESE CARRIERS ARE
STOPPING DOING THIS. WHY
CARRIERS ARE CANCELING
HUNDREDS OF THOUSANDS OF
POLICIES AS THEY HAVE TO GET
THEIR PREMIUM. NOW BECAUSE
THEIR SURPLUS HAS BEEN AIRED
BY THESE EXCESSIVE LOSSES.
THAT WAS PROBABLY IS BEING
EXACERBATED BY THE FACT THAT
THE CARRIERS THAT FAILED. THE
FLORIDA INSURANCE GUARANTY
ASSOCIATION, WHICH IS THE
STATE THAT PAYS THE CLAIMS OF
BANKRUPT INSURANCE OKAY. THERE
IS THERE’S A SUPPORT NETWORK
CARRIER THAT GOES PRO STATE
DOES HAVE SUPPORT THAT WORK
FUNDED BY OTHER CARRIERS.
BIDEN HAS AUTHORIZED
350 MILLION DOLLAR ASSESSMENT
TO PAY THE LEGACY CLAIMS OF
THE CARRIERS THAT HAVE
RECENTLY BEEN PLACED INTO
ASSAULTS. THE PROBLEM IS WHEN
THEY DO THAT, THEY TELL EACH
CARRIER WHAT YOU OWE TO THE
FIRE DEPARTMENT AND THEN THEY
THEY THEY WILL PUT AN
ASSESSMENT, YOUR HOMEOWNERS
POLICY ON YOUR AUTOMOBILE ALL
SEE ON BY IN FLORIDA. BUT IT
WILL BE A $1.2, $1.3, DOLLARS.
AND AS THEY COLLECT THE MONEY
FORWARD AT I GOT PAY THE
CLAIMS AS THEY BUT THE STATE
INSTEAD, WE WANT THAT 3.50,
RIGHT NOW. SO THE CARRIERS ARE
HAVING TO PAY THEIR
ASSESSMENT, WHICH FURTHER
IMPAIRS THEIR SURPLUS YET THIS
SO THAT THEY DON’T WRITE A
30 MILLION DOLLAR CHECK TO PAY
THEIR FICA. THAT’S LIKE TAKING
ANOTHER 30 MILLION DOLLARS IN
CLAIMS BECAUSE IT DIRECTLY
REDUCES THEIR SURPLUS. NOW
CLAIMS BECAUSE IT DIRECTLY
REDUCES THEIR SURPLUS. NOW Greatness Lives Here. JULY, THE INSURANCE COMPANIES
BEGIN THEIR REINSURANCE TREATY
NEGOTIATIONS. THAT’S THE
INSURANCE AND INSURANCE
COMPANIES SPY. AND THE PRICE
YOU PAY IS BASED UPON YOUR
FINANCIAL STRENGTH. SO THEY’RE
ALREADY IN AIR. THE 5 MAKES
WORST. AND NOW REINSURANCE
COSTS WILL EITHER WHICH AGAIN,
WILL DRIVE MORE RATE INCREASES
OR THEY WILL ABLE TO PURCHASE
THE SAME LEVEL OF REINSURANCE
THEY PURCHASED IN THE PAST,
WHICH MEANS THAT THE WIND
BLOWS THERE ARE MORE LIKELY TO
FAIL. SO YOU SEE HOW WE’RE
CERTAINLY THIS DRAIN AND IT
KEEPS GETTING WORSE AND WORSE.
AND I KNOW YOU MAY BE SORRY
YOU EVER ASKED ME TO ANSWER
THESE QUESTIONS.
>> BUT THAT’S HOW IT WORKS.
KNOW IT’S BUT IT’S IMPACTING
SO MANY PEOPLE AND I’M CURIOUS
IF YOU HAVE ANY ADVICE FOR
HOMEOWNERS WHO ARE SEEING
THESE PREMIUMS AND SAYING
THAT’S TOO EXPENSIVE OR ANY
TIPS FOR PROSPECTIVE HOME
BUYERS WHO ARE LOOKING TO BUY.
WE KNOW SO MANY ARE AND
THEY’RE LOOKING FOR AN
AFFORDABLE RATE AND THEY’RE
NOT SEEING IT BASED ON WHAT
WE’RE DEALING WITH AND ALL THE
ISSUES THAT ARE PLAYING A ROLE
IN THIS.
>> AGAIN, YOU HAVE ASKED GREAT
FIRST OF ALL, WHAT I TELL
PEOPLE IS GOING ON IN THE
MISSPELLING INSURANCE AND I
WANT YOU TO CALL MY OFFICE. I
WANT TO TALK TO MY PERSONAL AT
STAFF. I WANT YOU TO BUY FROM
BUT WHEN SOMEONE CALLS OUR
OFFICE SAYING I GOT TO READ
ALL THE WORK THAT TO WE SAY
START RIGHT THERE. YOU’VE GOT
A RENEWAL. COUNT YOURSELF.
LUCKY PAY THE BILL. DON’T
HASSLE TO GO UP, BUT I CAN’T
AFFORD OKAY. IF YOU CAN’T
AFFORD THE INCREASE, CAN YOU
AFFORD REPLACE YOUR AIR
CONDITIONER? YOUR ROOF IS
THAT’S WHAT YOU’RE GOING TO
HAVE TO DO FOR ME TO GET YOU A
QUOTE. SO THE ADVICE THAT GIVE
A GREAT QUESTION AND THANK YOU
FOR GIVING THE OPPORTUNITY TO
SAY THIS ON TELEVISION AS IF
YOU HAVE A COUNT YOURSELF.
LUCKY AND TAKE IT. IF YOU’RE
BY HALL OR IF YEARS. CERTAINLY
CURE STILL FURIOUS ABOUT
SHOPPING. THERE’S THINGS THAT
WE AS AGENTS HAVE TO HAVE
BECAUSE RIDERS ARE REQUIRED.
YOU’RE GOING TO NEED HAVING
WHAT’S CALLED A FOUR-POINT
INSPECTIONS. THAT’S WHERE
PROFESSIONAL INSPECTOR COMES
OUT AND THEY LOOK AT IT. THE
ROOF, THE AIR CONDITIONING,
THE PLUMBING AND THE ELECTRIC
IT WILL GIVE US THE AGE AND
CONDITION A LOT OF CARRIERS
AND YOUR ROOF IS 45 YEARS OLD.
THEY WILL TAKE SOME ARE 10. IF
YOU HAVE A FLAT ROOF, THAT’S A
FLAT IS USUALLY A ROCKET CAR
ROOF CARRIERS WILL TAKE YOU AS
THE BUMBLING TO BEAT AS
ROCKETS ARE OF THE LAST 10
YEARS. BUT THEY DON’T TAKE
PROPER TO OUR ROOTS. IF YOU
HAVE LINK APPLY OR IF YOU’VE
GOT A NICE THOUGHT AND THEY
WILL TAKE IT IF YOU HAVE
COPPER WIRE AND IT WILL TAKE
IT IF YOU HAVE STAFF WALK OR
RESCIND USE, PADDLES, THEY
WILL TAKE IT. YOU’RE A
CONDITIONS WERE 20 YEARS OLD
OR HOT WATER HEATERS FOR 50
YEARS OLD. YOU’RE GOING TO
HAVE REPLACE STATES. SO
THERE’S A LOT OF MONEY TO BE
SPENT IF YOU’RE INCREASE. WENT
FROM 28 TO 4200. YOU IF YOU
MIGHT HAVE TO SPEND A LOT OF
MONEY TO KEEP A LOWER PREMIUM,
THEY ALSO DO WAS CALL WITH
ADDITION STRETCH.
>> THAT LOOKS AT THE MALE
PATTERNS OF THE TRUST PLACED
IN THE SIZE OF THE MALES AND
THE ACCURACY OF THE COUNTY
>> SO A GOOD 4 POINT. OH, IT
SAYS THAT YOU’VE WELL
CONSTRUCTED ALL HELP YOU
CONSIDERABLY.
>> LET ME ASK YOU THIS, I KNOW
THAT THIS ALSO PLAY. YOU CAN
TELL ME BETTER THAN I KNOW.
BUT
>> DOES THE CITIZENS INSURANCE
THAT THE STATE, IT’S THE
STATE-BACKED INSURANCE IS THAT
SO IS THAT THE DEFAULT FOR
SOME FOLKS WHO CAN’T? YOU
KNOW, AFFORD OR THEY’RE
GETTING DROPPED? IS THAT WHERE
THEY’RE GOING?
>> YEAH, A LOT OF FOLKS ARE
ENDING UP ITS CITIZENS SENATE.
YOU CAN’T SEE IT. BUT THERE’S
A LOT OF OUR WALL RIGHT BEHIND
ME IS A GIFT FROM THE
GOVERNOR. GOVERNOR BUSH I WAS
THE CHAIRMAN OF THE BOARD
ESTATE AGENTS ASSOCIATION. ONE
CITIZENS WAS CREATED. CITIZENS
WAS. CREATED SAFE STATE LIKE
CITIZENS WAS CREATED. CITIZENS
WAS. CREATED SAFE STATE LIKE Greatness Lives Here. 70 MILLION DOLLARS IN TAXES
WHEN THEY URGE THE RESIDENTIAL
PROPERTY CASUALLY. JOIN
READING ASSOCIATION WITH THE
WIND WILL CITIZENS IS A TO
CHALLENGES BECAUSE THERE WAS
SO POLITICS BEHIND TALK YELL
UNDER WAS COMMISSIONER. IT WAS
RUNNING FOR GOVERNOR WHEN
CITIZENS WAS PUT TOGETHER. THE
LAW SAYS THAT CITIZENS CAN
CHARGE IT A RATE THAT’S LESS
THAN THE AVERAGE OF THE 10
HIGHEST PRIVATE CARRIERS IN
THE AREA. CITIZENS WASN’T
INTENDED TO BE A COMPETITIVE
MARKET. BUT THE FIGURES THEY
WERE USING THE CITIZENS WERE
CREATED WERE LIKE 8 OR 9 YEARS
OLD. SO ITS CITIZENS WAS
CREATED. IT WAS THE MOST PRICE
COMPETITIVE PRODUCT THERE WAS,
WHICH IS WHY CITIZENS EXPLODE.
BECAME SECOND LARGEST
HOMEOWNER INSURER IN THE
COUNTRY. CITIZENS IS NOT A LOT
FOR WAY. THAT HAVE SAID JUST
PHENOMENAL JOB. GETTING THE
POLICY RIGHT. AND CITIZENS IS
NOW FINANCIALLY A STRAW. THEY
CAN. THEY CAN TAKE A MAJOR
LOSSES CITIZENS IS DOUBLE IN
SIZE IN THE LAST YEAR. THE
RATES ARE STILL OUT ACTION
WHERE WE UP COMPLETELY. SO A
LOT OF THESE POLICIES ARE
ENDING UP IN CITIZENS BECAUSE
THAT’S THAT’S ENTITY THAT WAS
CREATED TO BE ABLE TO TAKE
ALSO OR OTHERWISE.
UNINSURABLE. BUT IT’S ALSO
COMPETITIVE IN SOME AREAS. SO
IT SHOULD BE. BUT A LOT OF
PEOPLE ARE GOING THERE. THE
CITIZENS ALSO HAS RULES. THEY
WILL TAKE EVERYTHING. THEY
STILL HAVE TO HAVE THEIR OWN
TYPE OF INSPECTION AND THE
CITIZENS ESPECIALLY CAN BE
MORE STRINGENT THAT THE
REGULAR FOR. YOU MENTIONED
CITIZENS. BUT IT’S NOT
AUTOMATIC ENTRY.
>> I THINK THAT’S THE
ONBOARDING. THAT’S I THINK. I
I THINK THAT’S THAT WAS THE
POINT WAS TRYING TO GET ACROSS
IS THAT PEOPLE JUST THINK IF
THERE PRIVATE INSURER IS
DROPPING THEM, ARE RAISING
THEIR RATES, GOING GO THERE
AND FIND A LOWER RATE AND GET
AUTOMATICALLY AND SURE IT. AND
THAT’S NOT THE CASE THAT THAT
THAT WAS BASICALLY THE
PLAYOFFS TRY TO MAKE IS THAT
ACCURATE?
>> YES, YEAH. THAT GUESTS
AREN’T ANSWER. BUT SHOULD
>> YES, YEAH. THAT GUESTS
AREN’T ANSWER. BUT SHOULD Greatness Lives Here. PERMISSION THAT THE GENERAL
PUBLIC DOES TALK NOW. OKAY.
INSURANCES SOLD AS A COMMODITY
FOR THE MOST PART, PEOPLE THAT
SELL IT AND WAS ABLE TO THEY
WANT FASTER AND CHEAPER. IN
WHAT WORLD DO YOU GET
SOMETHING BETTER FOR LESS
MONEY? THAT INSURANCE IS A
CONTRACT. IT IS A WRITTEN
CONTRACT IS NOT A COMMODITY.
SO YOU HAVE TO VERY CAREFULLY
LOOK AT WHAT THE CONTRACT
SAYS. UN CHAMBERS NOT ALWAYS
BETTER BACK TO THE INSURANCE
BUSINESS. EXACT OPPOSITE IS
TRUE.
BUSINESS. EXACT OPPOSITE IS
TRUE. Greatness Lives Here. >> AND MY THANKS TO TOM COTTON
FOR HIS INSIGHT THIS MORNING
FOR MORE INFORMATION ON
FLORIDA’S HOME INSURANCE
CRISIS. JUST HEAD OVER TO
CLICK ORLANDO DOT COM SLASH
WEEKLY. I’M JUSTIN WARMOTH.
HAVE A GREAT SUNDAY.