Senators sound alarms about a Citizens bailout in federal probe

ORLANDO, Fla. — Editor’s note: This story is available as a result of a content partnership between WFTV and the Orlando Business Journal.

The U.S. Senate Budget Committee is launching an investigation into the financial stability of Citizens Property Insurance Corp. over concerns U.S. taxpayers may be on the hook for a bailout if a severe hurricane hits Florida.

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The committee requested a lengthy list of financial documents and communications in the probe, including those regarding discussions between Citizens executives, state regulators and Gov. Ron DeSantis about Citizens’ solvency and plans for the state-backed insurer if it were unable to cover losses, according to a letter sent on Nov. 30.

The Florida “insurer of last resort” has more than doubled in size to 1.3 million policies while suffering billions of dollars in losses since 2020 during one of the most tumultuous periods on record for the state’s property insurance market. The Florida Office of Insurance Regulation has ramped up efforts to transfer policies back to private-market carriers since April, but despite some progress, those efforts have largely fallen short.

Photos: Norman Lear through the years

Click here to read the full story on the Orlando Business Journal’s website.

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Video: Florida homeowners with Citizens insurance to see double-digit rate hike Florida homeowners are bracing for another home insurance price hike. (Sabrina Maggiore, WFTV.com)

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