Joe Freitas think $ 109,000 Nice in her new home. His agent recommended insurance policy $139,000-enough to give him a cushion in case of disaster.
But Florida insurance from the latter says that’s not enough and will only be guaranteed if he was willing to Freitas pay $ 237,000 policy.
“I really feel strong-armed,” said Freitas. “I feel harassed and blistering. When this happens the first, I thought maybe it was a mistake and try to figure out what my path will become disputes this and found out there is really no way. “
It is because of the large increase in the estimated cost of replacement is wrong. Anyone applying for insurance with citizens will come across the same number. And for the several thousand who had no choice but to take what the citizens of offers, the increase in hard to buy.
It is true that in this sluggish housing market, cost more to build than to buy an existing one. But Freitas question whether it would actually cost almost $ 100,000 more to rebuild his home. And if citizens manage to raise money in larger insurance policies, the industry watchdog said it was just a matter of time before other insurance companies use a similar model.