ST. PETERSBURG, Fla. (AP) – July 6, 2010 – Florida’s public insurance carrier says someone fraudulently changed its address through the U.S. Postal Service.

Citizens Property Insurance is trying to warn roughly 1 million policyholders and new applicants that checks and correspondence from June 14 to June 28 may not have been received. Even worse, it worries the information could be used for identity theft.

Citizens covers Florida homeowners who are unable to get private insurance on high-risk properties.

It didn’t learn about the fraud until early last week, after receiving a change-of-address confirmation from the Postal Service. Mail sent to Citizens’ Jacksonville headquarters was wrongly diverted, but the insurer caught the fraud before a second request to change its P.O. Box was processed.

Copyright © 2010 Associated Press, with information from the St. Petersburg Times.

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First let me start with a quick update on F.A.I.R. We are still staying in touch with the property insurance issue. Some recent information:

1. State regulators have approved rate increases on some smaller insurance companies. There are some other insurance companies who are also asking for rate increases.

2. Nationwide Insurance has plans to drop 60,000 more insurance policies.

3. State insurance regulators recently took over a troubled insurance company (American Keystone Insurance Co.)

4. Chinese drywall is becoming a factor with issuing homeowners policies and not renewing policies.

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NOW FOR SOME EXCITING NEWS!          RETROFIT OF SW FL.

Retrofit of SW FL is an offshoot of F.A.I.R. This is a not for profit organization which will harden all single-family properties ,that qualify, to a category 3 hurricane status. FEMA will pay for 75% for low income families & grant money or private donations will pay for the other 25%. For the homes which do not fall into that category, FEMA will pay for 75% and the homeowner will pay the other 25%. All you must do is fill out an application which is then sent to FEMA for approval and then we are basically ready to go. We have just received the endorsement from Collier County Emergency Management which is our first step to begin. Since it is SW FL it includes Lee, Hendry, Glades, Charlotte & Collier. This is so exciting because it is a WIN WIN for all of us.

We are also in need of people to help us as this is a huge undertaking. So if you have an interest and can devote some time, please let me know. The board of directors is already in place. A general building contractor is all set.

For further information and how to apply, you may call me. We will be launching Retrofit in the near future.

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WHAT IS ABOUT TO HAPPEN WITH PROPERTY INSURANCE RATES!

CITIZENS PROPERTY INSURANCE

1.       All of Citizens’ residential wind-only policies are being discontinued. If you have a current policy with Citizens then you must reapply for a new one. Contact your agent to see if you qualify.

2.       A new task force has been organized to make recommendations for changes in Citizens to bring it back to an insurer of last resort and build its reserves.  Their report is due to the Legislature by January 31^st.  The following are some of the changes being proposed by the task force group to the Legislature.

A.       Annual premiums on a statewide average would be raised 10% a year, beginning in 2010.

B.      An increase of 20% a year for individual Citizens policyholders.

C.      An annual cap of 15% for any given territory.

D.      Not to write new Citizens policies for erosion-prone coastal areas based on state and federal guidelines.

E.       Prohibit Citizens from insuring new homes and condominiums near the coast.

F.       Making potential new policyholders and their agents sign certifications that they could not find coverage from  private insurers, or the only offer is 15% higher than Citizens rates.

G.     They are considering suggesting that present policyholders not be able to object if a private insurer wants to take their policy out of Citizens.

3.       Currently Citizens has 1.1 million policies. Last year private insurers removed nearly 400,000 homeowners policies from Citizens. 

NEW LAW – CONDOMINIUM OWNERS

      Condominium owners in Florida are required to have a personal home insurance policy that insures contents.  The policy is called Homeowners 6.  Even if the unit is rented, it is still the owner’s responsibility to comply and purchase the policy.

      There is much confusion about this law and F.A.I.R. believes it will be repealed in the next general session of the Legislature.

RECAP – FYI

      This past December an administrative law judge rejected a 47.1% average rate increase sought by State Farm Florida, who is the state’s largest private insurer.

WEBSITES FOR YOUR BENEFIT –

     www.citizensfla.com; www.fmap.org (FL. Market Assistance Plan referral service for insurance)