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Welcome to the Key West Townhall Meeting
Prepared by the Grassroots Organization F.I.R.M.Fair Insurance Rates in Monroe May 24, 2007
April 10, 2023 2
Agenda
Welcome- Teri JohnstonRepresentative Ron SaundersCondo Rates-Teri Johnston/Heather
CarruthersQuestions/AnswersCitizens Task Force-Heather CarruthersMitigation – Teri JohnstonClose- Teri Johnston
April 10, 2023 3
2007 Good News
Citizens current rate frozen until 2009 Increased uniformity of statewide building code
Elimination of panhandle exemption Establishment of windstorm construction task force Establishment of “code plus” building criteria More consistent application of mitigation credits
Mandatory 90-day claims resolution Expansion of definition of “High Risk Accounts” to
include interior areas Possible elimination of Citizens’ distinction among
“Personal Lines Accounts,” “Commercial Residential Accounts,” and “High Risk Accounts”
April 10, 2023 4
FIRM Condo Strategy
Duplicate our residential strategy Financial Impact Comparative Data Mitigating Factors Meteorology Profit and Loss
April 10, 2023 5
Escalating insurance premiums are devastating our economy.The last Citizens increase (from
$16.92/thousand to $20.91/thousand) represents $35 million dollars of lost disposable income of Keys residents.
The proposed 44% increase (which has been eliminated) would have represented $79 million dollars out of our pockets.
Effect of Skyrocketing Windstorm Premiums on Monroe County
April 10, 2023 6
To date FIRM has not been able to organize or collect data from the over 300+ Condo Associations in Monroe County. Firm needs a representative sampling of 30-50 Condominium Association Insurance data for analysis.
We need a copy of your Association Declaration pages from the past 3 years.
Financial Impact
“
April 10, 2023 7
Comparative Data
We need to know WHO is insuring your Association so that we can investigate rates statewide. Are Monroe County Condominiums being treated differently from the rest of the state? We have the following information on Citizens Insurance but what about your “Building” insurance.
April 10, 2023 8
Estimated 2006 Citizens’ Condo Windstorm Premiums on $350,000 Coverage
From CPIC filing for combined building & contents for a 5-unit building, 2 or more stories high effective August 1, 2006
$5,201
$5,093
$2,793 to $5,201
$5,201
$5,201
$5,093
$5,093
5,201
$10,831 to $13,125$10,831 to $13,125
$5,201
$2,793 to $5,201
April 10, 2023 9
Mitigating Factors
Monroe County is especially well equipped to deal with hurricanes.
Monroe County has the strictest building codes in the state of Florida, requiring buildings to withstand 150 MPH gusts.
Key West has the largest wood-frame historic district in the nation, with thousands of buildings that have withstood storms for over a century and a history of construction to endure the sometimes harsh environment.
Many historic buildings have been significantly reinforced over the past 30 years.
The low population density of the Keys translates into fewer housing units and lower potential storm exposure.
.
April 10, 2023 10
Meteorology
Many areas outside of Monroe County have experienced tropical storms as frequently as or more frequently than Monroe County.
City years between tropical storms
Hollywood 2.60
Deerfield Beach
2.60
Boca Raton 2.60
Ft. Pierce 2.65
Florida City 2.65
Key West 2.70
Miami 2.70
Ft. Lauderdale 2.70
Stuart 2.75
Lake Worth 2.75
Spring Hill 2.75
Jupiter 2.87
Pensacola 2.93
Jacksonville 3.00
Marathon 3.14
SOURCE: www.hurricanecity.com
April 10, 2023 11
Insurance Claims Per Policy in Selected Counties – Wilma & Katrina
CountyCitizens
Policies in Force (HRA)
StormCitizens
Windstorm Claims
Wind-strength Relativity
Claims Paid per Policy
Monroe 24,632 Katrina $22,542,608 baseline $915
Palm Beach
58,352 Katrina $120,286,077 similar $2,061
Collier 9,388 Katrina $31,582,635 similar $3,364
St. Lucie 1,652 Katrina $9,220,467 lower $5,581
Monroe 24,632 Wilma $22,927,392 baseline $931
Dade 85,270 Wilma $198,031,608 similar $2,322
Property damage per insured property from the same storms is lower in Monroe than elsewhere in Florida.
Wilma and Katrina are prime examples.
TO READ: In Katrina, wind strengths were lower in St. Lucie County than Monroe County, and Citizens windstorm claims paid were higher.
SOURCE: Citizens Property Insurance and the National Weather Service
April 10, 2023 12
Profit and Loss
FIRM needs your condo historical data so that we can compare premiums collected vs. claims paid.
April 10, 2023 13
F.I.R.M’s Approach
Building strength analysisAnalyze premiums paid vs. claims paid
compared to other areas of the state.Need feedback from YOU!
April 10, 2023 14
Condo/Commercial Rates: What We Know Today
Only 5 companies writing the majority of condo association policies vs. 30 companies writing condo unit owner (residential) policies. Citizens represents 57% of the market. Very little competition.
A national standard is used instead of a state standard to distinguish what is inside versus outside of the walls.
Potential for litigation as unit owners and association may differ over where responsibility for damage lies.
Much of the condo market consists of mega-buildings (Century Village, high-rises along Key Biscayne, etc.) which represent very high PMLs
April 10, 2023 15
Condo Data Collection
1. Need to see who is insuring Condo Associations- Are the coverages and rates varying between companies who are insuring the “Building”
2. Why are there only a small number of companies willing to insure the “Association”. Why do they appear to be a higher risk?
April 10, 2023 16
F.I.R.M.’s Focus Forward
Permanent elimination of “Use and File”
Condominium Rates Federal Catastrophe Insurance Mitigation Education Continued Improvement in Citizens
April 10, 2023 17
Stay Active in Tallahassee
Since forming, FIRM members have traveled to Tallahassee on 7 occasions to lobby for fair rates for Monroe County and to monitor legislative actions that could potentially impact our county.
April 10, 2023 18
Task Force on Citizens Property Insurance Claims Handling & Resolution
Members: Insurance Advocate General Bob MilliganRepresentative Julio RobainoSenator Mike FasanoMike Twomey, AttorneyMike Lancashire, The Main Street America
GroupTim Loftin, Citizens Property InsuranceHeather Carruthers, FIRM
April 10, 2023 19
Task Force on Citizens Property Insurance Claims Handling & Resolution
Mission:Resolve outstanding Citizens Property
Insurance Windstorm Claims from the 2004 and 2005 storm seasons (due July 1, 2007)
Improve customer service on claims handling side (due July 1, 2008)
April 10, 2023 20
Task Force on Citizens Property Insurance Claims Handling & Resolution
Findings from first meeting Legislative intent behind creation of Citizens was for it to be
non-competitive Citizens was woefully unprepared for the 2004/2005 storm
seasons 2 staff claims adjusters in 2004 8 staff claims adjusters in 2005
Over half of call center activities outsourced to firm on West Coast (suffered Wilma damage)
Received up to 40,000 calls per day after Wilma Outsourced nearly all adjusting, much to out-of-state adjusting
firms already taxed due to Katrina Used outmoded paper filing and tracking system for all claims
Over 30,000 claims filed in Wilma
April 10, 2023 21
Task Force on Citizens Property Insurance Claims Handling & Resolution
Steps CPIC has taken to correct problems Many new hires
Currenty 61 adjusters on staff Goal is to have 75 staff adjusters by end of 2007
Staff adjusters will manage outsourced adjusters if needed
Call switching moved to satellite Expanded call center in Jacksonville Mobile units created to provide on-site adjusting
and processing post-catastrophe Claims tracking gone paperless
April 10, 2023 22
Task Force on Citizens Property Insurance Claims Handling & Resolution
Problems identified to date About 5% of claims from 2004/2005 unresolved Citizens has 8,500 agents
Most insurers have a few hundred in Florida Need to improve agent/Citizens/consumer communications
Public adjuster conflicts Incentive to extend claims conflicts Lack of certification for adjusters
Lack of education on local building codes and practices
April 10, 2023 23
Task Force on Citizens Property Insurance Claims Handling & Resolution
Next meetingsMonday, June 4, 2007 in TallahasseeWednesday, June 13, in PensacolaTuesday, June 19 in Ft. Lauderdale
Nova University (Rose and Alfred Miniaci Performing Arts Center, 3100 Ray Ferrero Jr. Blvd., Ft. Lauderdale, Fl 33314)
Public Input WELCOME 2:00 to 4:00 p.m. 6:00 to 8:00 p.m.
April 10, 2023 24
What YOU can do - MITIGATION
Mitigation factors all work together to save you money. There are four significant factors that can reduce your premium:
Shutters. Class A, B or C shutters can save you up to 33%.
If your home is compliant with the current Florida Building Code, either through new construction or renovation, you may be able to save up to 45%.
April 10, 2023 25
What YOU can do – MITIGATION (continued)
Roof Discounts. How your roof is covered and how it is connected to your walls can save you money. Hurricane straps are a big help.
April 10, 2023 26
What YOU can do – MITIGATION (continued)
Construction. A hip roof may save you up to 23%.
SIMPLE HIP ROOFA gable roof with the ends
brought together at the same pitch as the rest of the roof.
PYRAMID HIP ROOFA hip roof built on a square
base with eaves of the same length.
April 10, 2023 27
Mitigation Inspections
Any licensed contractor can complete your inspection except for shutters
Shutters must be inspected by a licensed engineer, registered Architect or Building Code inspector.
April 10, 2023 28
Closing Remarks
We have proven that we do have a voice and can make an impact.
Stay active, educated and involved.This fight is FAR from over.Thanks to Representative Saunders and
all of you for taking the time to join FIRM this evening.
April 10, 2023 29
Send Information to:
FIRM
PO Box 5882
Key West, Florida
33045-5882
