Tangerine Bay Club asks for assistance with insurance

Tangerine Bay Club Board of Directors wrote a letter to Mayor Jim Brown asking for his assistance regarding their increase in Wind Insurance with Citizens Insurance.

“We just received Citizens offer to renew our Association’s Wind Insurance; the annual premium increases from the current $49,000 per year to $450,000 per year. That is not a typo,” wrote the board.

“The unprecedented annual increase would impact Tangerine Bay Club by: Increasing our total operating expenses by 30-35 percent per year, significantly depressing the market value of individual units, their salability, or both. We applaud your efforts to seek ways to reduce Florida’s exposure to the monetary costs of a hurricane. However, we seek your involvement in asking Citizens to reevaluate the pros and cons of their planned and unprecedented rate increases and timing. The increase quoted to Tangerine Bay Club clearly implies Citizens no longer wants to insure our property. We will try to find coverage elsewhere but the magnitude and timing of the Citizens increase will make that effort far more difficult and costly than need be the case. Why? Citizens’ action, in and of itself, establishes a new, much higher price point—umbrella—which other insurance companies may find attractive but which will significantly raise premiums more rapidly and drastically than would be the case if the market were given time to adjust. Citizens current dilemma grew over a period of years, a too much too fast cure can cause serious side- effects, some expected, some not.”

Mayor Jim Brown responded that although he sympathized, he would not be able to help directly, but could forward the information to State legislators who may have more of a direct influence.

“As you know, Citizen Property Insurance is a creation of State government. The magnitude of the increase cited in your letter is startling. Unfortunately, the Town of Longboat Key has no authority or influence over Citizens and only limited influence with State legislators. However, our local State legislators Senator Bill Galvano and Representative Jim Boyd have attended our commission meetings and have shown an active interest in town affairs. Therefore, I am forwarding your letter to Senator Galvano and Represntative Boyd and am asking that they look into your situation. I am aware of other huge increases in annual insurance premiums that residents on Longboat Key experienced and recognize that this is an issue that affects us all. Hopefully, some positive outcome can be achieved to improve the situation at Tangerine Bay,” wrote Brown.

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