1 June 2016 Insurance

Citizens revises multi-peril policy

Citizens Property Insurance Corporation, a Florida-based windstorm coverage and general property insurance firm, has informed customers that there are some “important policy contract changes” coming up for Citizens multi-peril residential policyholders starting July 1.

The firm said that these changes will not diminish Citizens’ commitment to policyholders following an insured loss, but do require policyholders to engage with the firm early in the process to ensure their claims are quickly and completely handled.

The new policy contract will affect policyholders most directly in regard to emergency services and the timing of permanent repairs.

In case of a loss to covered property, the revised policy contract requires policyholders to take emergency measures to protect insured property from further damage. Emergency measures only include what is “reasonable and necessary” to secure the home and prevent further damage, and may not exceed the greater of $3,000 or 1 percent of the dwelling’s insured value, unless Citizens approves additional measures.

The firm added: “Secondly, to ensure that Citizens has the opportunity to inspect the damage and confirm coverage, the revised policy restricts when most permanent repairs can begin.
“There may be no coverage for permanent repairs that begin before one of the following occurs: 72 hours after the loss is reported to Citizens, the loss is inspected by Citizens, or verbal or written approval is provided by Citizens.”

Citizens said that recent spikes in water loss claims in South Florida and increased abuse of assignment of benefits will require that Citizens seek higher rates for most South Florida policyholders even though there has been no hurricane activity there in more than a decade.

“Rate reductions we had planned on offering policyholders in other parts of the state may have to be put on hold as the problem spreads,” said the firm. “The only way we can significantly reduce the need for higher rates is to make sure that we pay legitimate claims quickly while preventing unnecessary repairs and reducing litigation costs.”

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