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Citizens Insurance directed to think small

Citizens Insurance directed to think small
Florida Gov. Rick Scott, who said that state-backed Citizens Property Insurance Corp. is designed to fail. UPI/Martin Fried | License Photo

TALLAHASSEE, Fla., Nov. 2 (UPI) -- Florida Gov. Rick Scott said the state-backed Citizens Property Insurance Corp. is running a program that is designed to fail.

The complaint does not have to do with Citizens being in trouble, specifically, but on the likelihood that a severe storm would require homeowners to pay prohibitively high deductibles, the South Florida Sun-Sentinel reported Wednesday.

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"Our plan is relying on something that can't happen … relying on people who can't write a check," Scott said.

If homeowners can't cover their end of the repairs after a storm, then they could lose their homes. The insurance they paid for over the years would have, essentially, failed the homeowners.

With this in mind, Scott asked the insurers board to figure out how to shrink the company's size and risk.

Currently, policyholders would be required to pay as much as 45 percent of their premium in the event of a severe storm, the newspaper said.

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