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Any Florida property owner that reads the news occasionally should be aware that Citizens Property Insurance is a disaster waiting to happen. They should also be aware that even if they do not use this state-run behemoth to insure their property, as a Florida property owner, they will have a part of paying the piper when this company eventually fails.

With that being said, we must acknowledge that Citizens Property Insurance, with permission from the Department of Insurance and the Florida legislature, is taking certain steps to reduce the enormous exposure they have accumulated over the years. Risk mitigation is never easy because every penny of risk reduction goes right on the backs of the policyholders.

I have been an Insurance Risk Underwriter for several carriers including Citizens Property Insurance Corp. I also spent several years developing the inspection department for Citizens Property and Casualty I was in charge of property inspections for the entire State of Florida. The changes that have come down from underwriters fit into three main categories: bad, worse and terrible:

Bad

The company has decided to no longer offer coverage for dwellings with a replacement cost over $1mil dollars. They will also no longer offer coverage for condos if the dwelling and contents coverage totals more than a million. For many people, especially those not living in a million dollar home, this does not seem to be a problem but the truth of the matter is there are many million plus dollar homes in Florida and the majority of them are coastal and will lose coverage at their next renewal.

Worse

Coverage for screen enclosures (especially attached to mobile homes) is disappearing along with aluminum carports, patio covers, gazebos, storage sheds and other structures not permanently attached to the dwelling and sharing the same roof as the dwelling. No big deal right? Think about how many mobile home owners there are in Florida and all the homes with expensive screened cages around their trophy swimming pools.

Terrible

  •  Sinkhole claims are now subject to a minimum 10% deductible
  •  Assessments to policyholders of up to 45%
  •  Normal rate increases of 10% on average
  •  Maximum coverage for mold claims for property is $10,000 and liability $50,000
  •  Personal liability limits reduced to $100,000 (time to chat with your Umbrella carrier)

Anytime your liability exposure is increased at the whim of your insurer it’s time to bail. Property exposures are finite and measurable; liability exposures are determined by a judge or jury who has the authority to financially devastate a plaintiff and their family.

Diverse Insurance Group is here to assist our clients in securing the coverage they need to protect their most prized possessions. Because we are an Independent Insurance Agency we are able to find the most competitive rate. Whether it’s your home, auto, business or life. We know how hard you work to live your lifestyle, let us help you protect it. For further information regarding Diverse Insurance Group please feel free to contact us at any time also available Nights & Weekends.