Lawsuit: Citizens Insurance Falsely Inflating Property Values
Wednesday, February 8, 2012
By: Tom Parkinson

Feb,08, 2012 | WMFE - The Florida Association for Insurance Reform has announced a class action lawsuit against the state's largest property insurer. The lawsuit claims that Citizens Property Insurance Corporation is using a "back door" method to increase premiums based on inflated home values.

The plaintiffs say Citizens is using a software program that artificially inflates the replacement value of a home in order to charge homeowners higher rates.
At a press conference Tuesday, Republican State Senator Mike Fasano of Pasco County, stood with one of the plaintiffs, 82-year-old  Ruth Lauro.

“Ms. Lauro is a perfect example.” Fasano said. “She came to our office  wondering why her premium rose so high. We soon found out that her home, which is valued by the property appraiser at $50,000, is being appraised by Citizens at $129,000.”

Last year lawmakers rejected a plan that would have allowed the carrier to raise homeowner’s rates by about 2,000 percent.
Citizens insures more than 1.5 million properties in the state and the company has long complained that its customers pay a rate far too low to cover actual damages if the company has to pay out after a hurricane or other catastrophe. 
A spokeswoman for Citizens says it has no reason to over-insure its customers.