Citizens coverage for wind-damage to end for million-dollar homes
If you have wind-coverage on a high-priced home or condo through Citizens Property Insurance Corp., your days under the state-run insurer might be coming to an end.
Florida’s insurance regulator has given Citizens the go-ahead to decrease maximum coverage limit by half to $1 million on personal residential policies in wind-eligible areas, Citizens announced on Friday.
The change, which applies to both wind-only policies and “multiperil” policies that include wind coverage, will kick in as early as next month.
The former limit, which was $2 million in replacement cost value of a home or condo, will no longer be available for any new policies after February 1. People with homes valued at more than $1 million who aren’t currently covered by Citizens, have until Wednesday, Jan. 18 to file an application under the old limit.
For people who already have Citizens wind coverage, the new limit goes into effect on May 1, affecting those who might want to renew.
Citizens, which currently insures nearly 1.5 million policies in the state, is trying to downsize and return to its role of “insurer-of-last-resort.” This coverage change, and several bills moving through the Legislature, seek to help the insurer slim down.
Citizens' CEO Richard Wallace, sent in his resignation letter last week, indicating that he will leave the company in April.
The result for policyholders, in many cases, will be higher premiums. Insurance agents will be given a list of those affected by this change, in order to help them find new coverage.
The bulletin from Citizens is attached here.