Citizens Property Insurance Corp. facing possible $200M shortfall in litigation expenses
Despite attempts by the Legislature to reduce lawsuits and their related costs for property insurers, the state-run Citizens Property Insurance Corp. faces a potential $200 million shortfall in litigation expenses.
According to a presentation to be heard Thursday during Citizens’ Claims Committee meeting, a shortfall of $100 million to $200 million is projected over the course of the company’s current contract for litigation costs, which runs out at the end of 2026.
Any shortfall would be paid out of Citizens’ surplus, but spokesman Michael Peltier said it shouldn’t have a dramatic effect on rates in the future.
“Litigation already has a significant impact on rates,” Peltier wrote in an emai...
