When Citizens Property Insurance sends out its monthly customer bills, only 31 percent of them go to the same house that is insured.
The rest go to other mailboxes in Florida — and around the globe, according to data analyzed by the American Consumer Institute of Citizen Research.
More than 19,000 bills go to people who live in Canada, nearly 27,000 go to New Yorkers, almost 12,000 go to folks in New Jersey and hundreds more go to England, Germany and France.
From Singapore and China, to South Africa and Luxembourg, Florida’s state-run insurance company is providing subsidized insurance coverage to 22,775 property owners who reside abroad. Another 176,465 policies go to homeowners with primary addresses in other states, the study found. Story here.
At least 1 million of the nearly 1.3 million monthly bills for homeowners policies stay in Florida, but that includes an estimated 500,000 policies that go to addresses different from the property that is insured.
As Florida grapples with how to lower the cost of homeowners insurance along its hurricane alley, the out-of-state subsidies are a luxury it cannot afford, said Steve Pociask, president of the Washington, D.C.-based think tank that reviewed Citizens’ billing lists.
“It all comes down to affordability,’’ he said. “People who live here and have their primary homes insured here are teachers, police, service workers and they are being stung by higher prices. while 27,000 people who have their bills sent to New York are getting subsidized insurance. Why do we want to subsidize these folks?’’
The inequities are enough to prompt Sen. David Simmons, the chairman of the Senate Banking and Insurance Committee to draft legislation to require that out-of-state policyholders whose second homes or vacation are insured by Citizens no longer receive subsidized rates.