Homeowners: Understand Your Citizen Insurance Waivers

Citizens Insurance, also known as Citizens Property Insurance Corporation, is a not-for-profit, state-run insurance company that provides coverage for Florida residents who are unable to obtain insurance through the private market. It was established in 2002 by the Florida Legislature as an insurer of last resort, and quickly became the largest insurer in the state. To be eligible for Citizens Insurance, residents must be unable to secure coverage through another insurer or have been quoted unaffordable rates. The company provides limited coverage options and has a reputation for poor customer service, with a predominance of feedback describing an unfair claims process.

Who is eligible for Citizens Insurance?

Citizens Insurance is a not-for-profit, state-run company that provides insurance coverage for Florida homeowners who are unable to obtain it through the private market. It is the insurer of last resort, and only Floridians who meet the following criteria are eligible for a Citizens Insurance policy:

• They must be unable to secure coverage with any other private home insurance provider.
• The quotes provided by private insurers must be unaffordable, with rates at least 15-20% more expensive than a comparable Citizens policy.

Citizens Insurance offers several types of coverage tailored to meet the needs of homeowners and renters across the state. These include policies for detached, single-family homes and duplexes in which at least one unit is owner-occupied; condominium unit owners who live in the unit; mobile and manufactured homes; and renters or tenants of site-built homes, apartments or condominiums.

To be eligible for a Citizens Insurance policy, the property must also meet certain safety and structural requirements. For example, properties that have been determined to be unsafe for occupancy or have substantial structural deficiencies are ineligible for coverage.

What does a Citizens home insurance policy cover?

Citizens Insurance is a not-for-profit, state-run company that provides home insurance coverage for Florida residents who are unable to obtain insurance through the private market. It is often referred to as a "last resort" option for Florida homeowners.

A Citizens home insurance policy typically covers dwelling repairs, other structures, personal property, loss of use, personal liability, and medical payments. Here is a more detailed breakdown of what a Citizens home insurance policy covers:

Dwelling Coverage

This includes the building and any attached structures. The coverage amount is determined based on either the cost of completely rebuilding the home and attached structures following a total loss or the actual cash value, which is the estimated cost of replacing your home with a similar home of the same year, condition, and size, minus depreciation.

Other Structures Coverage

This covers structures that are not physically attached to your home, such as storage sheds, detached garages, and pool houses.

Personal Property Coverage

This covers the depreciated value of your personal property and home contents, such as clothing, appliances, and furniture. It also includes items stored off-premises, providing coverage anywhere in the world. However, there are usually dollar limits for expensive items like jewelry, furs, art, collectibles, and silverware.

Loss of Use Coverage

This covers additional living expenses if you are temporarily unable to live in your home following a covered loss. It pays for hotel stays, restaurant meals, and other costs incurred while your home is being repaired.

Personal Liability Coverage

This covers bodily injury or property damage for which you or other people covered by the policy are deemed legally liable. It also pays for damage caused by your pets.

Medical Payments Coverage

This covers reasonable and necessary medical expenses if someone is injured on your property or, under certain circumstances, off the insured property.

In addition to these standard coverages, Citizens offers optional coverage options such as Sinkhole Loss Coverage, Personal Property Replacement Cost, Increased Limits for Ordinance or Law, Mobile Homes, and Condominium Units. It is important to note that certain coverages may not be available or included under your policy, so it is essential to consult your policy documents for specific details.

Pros and cons of Citizens Insurance

Pros of Citizens Insurance

Citizens Insurance fills a critical void in the Florida insurance market, providing coverage for homeowners who are unable to secure it through private companies. Citizens Insurance is a not-for-profit, state-run company with the mission of helping Florida homeowners obtain insurance coverage. It is often the last resort for homeowners in Florida who cannot find standard home insurance coverage or are quoted unaffordable rates through another insurer. Citizens Insurance offers 24/7 claim reporting, and its policies include dwelling repairs, other structures, personal property, loss of use, personal liability, and medical payments.

Cons of Citizens Insurance

Citizens Insurance has limited coverage options and lower limits compared to private insurers. It does not cover carports, porches, screened enclosures, theft away from premises, pet liability, water backups, or personal injury. The coverage it provides comes with extremely low limits, such as a $1,000 limit for jewelry and electronics. Citizens Insurance also has a high NAIC Complaint Index, indicating that customers are often unsatisfied with the service they receive. Additionally, premiums with Citizens Insurance are likely to be high, and the company requires its policyholders to carry flood insurance, which adds an additional premium.

How to file a claim with Citizens Insurance

Citizens Insurance, or Citizens Property Insurance Corporation, is a not-for-profit, state-run company that provides home insurance for Florida residents who cannot obtain insurance coverage through the private market. It is designed to be an insurer of last resort for Florida homeowners who would otherwise be left without coverage.

Step 1: Contact Citizens

Firstly, you must contact Citizens to report your claim. You can do this online or by phone. Citizens provides a 24/7/365 service, so you can make a report at any time.

Step 2: Provide Information

When reporting your claim, you will be asked for the following information:

• Your contact information, including any temporary addresses or phone numbers where you can be reached if you have been displaced.
• A description of the damage (e.g. a tree falling on your roof or lightning striking your house).
• Your mortgage company information (if applicable).

Step 3: Initial Estimate

Once you have reported your claim, a Citizens adjuster will respond quickly to evaluate it. They will make an initial estimate based on your policy type, identification of covered damages, coverage limits, deductible amount, and national industry repair standards adjusted for your specific location.

Step 4: Initial Payment

For typical claims unrelated to hurricanes or other catastrophes, the Citizens adjuster will identify covered damages and issue a partial payment less the policy deductible. This initial estimate can change as more information is received.

Step 5: Supplemental Claims

You can file supplemental claims for any additional covered damages discovered during the repair process or if your contractor's estimate is higher than the adjuster's original estimate.

Step 6: Additional Payments

In the case of sudden water losses not caused by weather, eligible homeowner policyholders can call Citizens for immediate water clean-up services, which are free. After a catastrophe, such as a hurricane, Citizens makes initial payments to policyholders whose covered losses exceed their hurricane deductibles. As repairs begin, Citizens distributes additional payments to cover the replacement costs of the covered damage.

Step 7: Supplemental Payments

Supplemental payments are available for additional covered damages discovered during repairs or if market conditions render the initial settlement inadequate. Policyholders should contact Citizens before beginning repairs for damages not included in the initial estimate or if the contractor's estimate is higher.

Citizens Insurance customer service reviews

Citizens Insurance, formally known as Citizens Property Insurance Corporation, is a state-run, non-profit insurance carrier for Florida residents who are unable to find coverage from private insurance companies. Citizens Insurance is often referred to as a "last resort" for Floridians who are unable to obtain insurance coverage elsewhere.

Citizens Insurance has received mixed reviews from its customers. On the one hand, some customers have expressed frustration with the company's policies, customer service, and claim handling. For example, some customers have complained about unexpected policy cancellations, difficulties in obtaining refunds, and a lack of transparency in communication.

One customer, Vernon M, wrote:

> I went online to check on my bill. I was stunned to see that my policy had been canceled a week ago. I was never notified by Citizens or my Agent. Time to file a complaint with my state representative. Citizens is completely out of control. All I see online are negative reviews!!!

Another customer, Amanda R, shared a similar sentiment:

> Completely inept. The right hand has no idea what the left is doing. It has been nothing but aggravation, and I have never even submitted a claim. They are an unfair and awful company. Gives insurance then cancels without my notice, but then does not return all your money. Vague in their letters.

On the other hand, Citizens Insurance has also received some positive feedback. One customer, Jackie Moon, commented:

> Unlimited water damage coverage? I just put in a claim for water damage to my ceiling and roof, and they denied it because there was no evidence of wind damage. So much for that. They came attached to my home purchase, and my mortgage broker advised me that after the sale, I should wait a few months and then find another insurance carrier. I didn’t take his advice. I should have listened.

Overall, while Citizens Insurance may be a necessary option for some Floridians who cannot obtain coverage elsewhere, it is important for customers to be aware of the potential drawbacks and limitations of their policies. Citizens Insurance has a high NAIC Complaint Index, indicating that customers may often be unsatisfied with the service they receive. The company's policies are also more basic and limited in coverage compared to those offered by private insurers.

Frequently asked questions