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As Citizens' lawsuits mount, company tries new tactics in court and legislature

Citizens Property Insurance has a lawsuit problem.

More than 12,000 policy holders have sued the company in an effort to get their outstanding claims paid and, new data shows, the defense costs are rising — with the company billed more than $21 million for the last three months of 2013 alone.

Some of the longest-fought battles are in sinkhole alley — the section of the state that includes Hillsborough, Hernando and Pasco counties, which rest on a porous, cavity-prone limestone bed. The amount the agency spends on sinkhole litigation alone has has doubled — from an average per month expenditure of $944,345 for 2012 to $2,050,106 for 2013, according to data provided to state Rep. Frank Artiles, R-Miami, last week,.

As more than 2,100 homeowners have filed lawsuits for sinkhole damage reported more than two years ago, the legal costs of those claims are now costing

Citizens more than $4.4 million a month, or about $2,100 per sinkhole claim.

To deal with the mounting lawsuits, Citizens is fighting in the courtroom and at the capitol: Read more here.

 

Comments

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Hmmmm...

Yet Artilies does not question when niche adjusting firms are created to exploit sink hole claims? or water claims?

Don't litigate, just pay all claims? Are you freaking kidding me? And this person is making our laws?

If that ends up being the rule at Citizens, I am dropping my private insurance and going with Citizens. Every clogged toilet will result in a claim check coming my way! Wooohooo!

Ed Jenkins

The taxpayers greatly endorse the plan of shutting down this horrible concept of a taxpayer exposed insurance entity rather than allowing private entities to bear the certain losses that will come in the future with catastrophes. This horrible concept exposes the state to near certain ruin when the large hurricanes come in the future which was an incredibly stupid idea and needs to be wound down while we still can.

Bill Thompson

Citizens has large reserves in place, enough to cover 1-2 major hurricanes on its own. It also has reinsurance in place, so there is plenty of money to pay claims before having any surcharges to private insurance companies.

The real problem continues in that Citizens is unloading thousands of policies onto start-up, under-capitalized, non-diversified insurance companies that will go belly up with the first major hurricane. There will be thousands of homeowners unable to repair and restore their homes and will end up as claimants in bankruptcy court.

D

Shut the hell up already thompson you whiny loser. Haven't you noticed no one cares what you say or about your whines. Just go back to your sorry life already because no one wants to hear from you. Even jenkins get responses every once in a while but no one cares about your crap.

Bill Thompson

Someone just farted in the room and smelled up the place. The citizens do not want unwise people farting in the room and leaving their smell behind. The citizens want these horrible people to go fart somewhere else.

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