Citizens Property Insurance Review: Cost & Coverage

The Florida government is in charge of Citizens Property Insurance. Only if you live in Florida and a private business won’t provide you with coverage at a reasonable price will you be qualified for Citizens Insurance.

Citizens provide reasonable basic insurance. But homeowners gripe about the company’s challenging customer service, particularly throughout the claims procedure.

However, if Citizens is your only choice, in this article we review its cost and coverage.

What is the Citizens Insurance Company of America?

Citizens Property Insurance is a nonprofit organization run by the state of Florida. Citizens serve as “insurers of last resort.” It only covers assets that private insurers refuse to insure or won’t insure at a reasonable price.

A Citizens policy is available to you if:

A Florida-licensed insurance provider cannot provide you with coverage.
Quotes from Florida licensed insurance providers are more than 20% more expensive than those from Citizens for comparable coverage.

Please take note that only agents for Citizens Insurance may sell you coverage. Before you purchase insurance, your agent must provide evidence that you are qualified.

Citizens Property Insurance Review

Founded in 2002, Citizens Property Insurance Corporation is a government-created, non-profit insurer with headquarters in Florida. If you live in Florida and are unable to acquire private home insurance or if the insurance you do find is unreasonably expensive, Citizens home insurance can be an alternative for you. The business, which is frequently referred to as a “last resort carrier,” has grown to play a significant role in the troubled Florida house insurance market.

Since numerous private providers have discontinued offering home insurance in the state over the past few years, this prompted Citizens to establish a reinsurance fund in August 2022 on behalf of the Florida Office of Insurance Regulation (OIR).

By October 2022, there were over 1,000,000 pieces of insurance owned by citizens, a 43 percent increase from the 776,790 at the beginning of 2022. The fact that Citizens insure so many high-risk houses in Florida could cause issues in the event of a catastrophic loss.

Furthermore, Citizens offer HO-3 house insurance coverage, the most popular form of policy offered by the majority of home insurance providers in the Sunshine State. Your home’s structure, any detached structures, your personal belongings, additional living expenditures, medical bills, and your liability exposure are all covered by these policies. For more comprehensive financial protection, you might be able to add a few endorsements, such as sinkhole coverage and personal property replacement costs.

You must be able to demonstrate that you have not been successful in obtaining coverage from another Florida insurer to qualify for Citizens home insurance. Citizens will also mandate flood insurance for all of its policyholders, at an additional cost. These new rules were probably implemented to encourage homeowners to purchase private insurance.

Citizens Property Insurance Cover

Citizens Property Insurance policies include these six standard coverages to protect your home, belongings, and personal liability:

#1. Dwelling:

After a loss, Citizens pay to fix or replace your home’s structure. Except in Miami-Dade and Monroe counties, where coverage is increased to $1 million, coverage is restricted to up to $700,000.

#2. Other structures:

This covers the cost of restoring or constructing fencing, storage buildings, detached garages, and other structures on your property that are not attached to your house. Note that up to 60% of your dwelling coverage limit can be covered.

#3. Personal property:

After a covered loss, this pays for the repair or replacement of your items, such as furniture, clothing, electronics, and other things you own. Note that up to 50% of your home coverage limit can be covered.

#4. Loss of use:

If you must live somewhere else while your home is being rebuilt due to an insured loss, it will cover your hotel costs, restaurant tabs, pet boarding costs, and other temporary living costs. Note that up to 10% of your home coverage limit can be covered.

#5. Personal liability:

This provides money to cover legal and medical costs if you are held liable for someone else’s injuries or property damage while they are on your property. Note that the maximum amount of coverage is $100,000.

#6. Medical payments:

No matter who is at fault, this pays for low-cost medical expenditures if someone gets hurt while on your property. Note that the maximum amount of coverage is $2,000.

Additional coverages offered are:

You might be able to add some of these extra coverage options, also known as endorsements, to your policy for an additional cost, depending on your residence and where you live. However, Citizens Insurance does not provide coverage for harm brought on by either sump pump overflow or water backup, two common endorsements.

#1. Ordinance or law:

This covers the additional expense of bringing your house up to code following a covered loss. Note that only 25% of your residence limit is covered.

#2. Sinkholes:

The structural damage to your home brought on by sinkhole activity is covered.

#3. Loss assessment:

Upon the filing of a claim for a group loss against members, this pays up to $1,000 for your portion of the debt owed to your homeowners association.

#4. Fungi, mold, dry rot, or bacteria:

This provides up to $10,000 for the removal and replacement of mold-damaged components of your home and possessions.

#5. Debris removal:

This offers up to $500 to remove downed trees from your yard or a neighbor’s yard following a covered storm.

#6. Trees, shrubs, and other plants:

This replaces trees, shrubs, and plants that have been harmed by a covered peril up to 5% of your dwelling coverage limit, but not to exceed $500 per plant.

#7. Fire department service charge:

When the fire department is called to your home in an emergency, it will reimburse you for up to $500 in service costs.

#8. Credit or debit card, forgery, or counterfeit money:

This protects you against losses of up to $500 brought on by unauthorized use of your credit or debit cards.

#9. Flood insurance:

The Federal Emergency Management Agency (FEMA), a government agency, administers the National Flood Insurance Program (NFIP), through which Citizens provide flood insurance coverage.

#10. Dwelling fire insurance:

For properties such as second houses, holiday homes, or rental properties that aren’t your primary residence, you may need fire insurance.

#11. Wind-only insurance:

This is a separate windstorm insurance coverage that solely protects your house from wind and hail damage, including that caused by hurricanes and tropical storms.

#12. Mobile home insurance:

This provides typical coverage for your manufactured or mobile home, as specified in the previous section.

#13. Condo insurance:

Condo insurance can be added as extra coverage to your condo association’s primary policy to cover your personal property, the inside of your condo unit, and personal responsibility.

#14. Renters insurance:

Renters insurance, purchased by tenants, provides liability and loss of use coverage in addition to protecting your personal property in your rental home or apartment from fire, vandalism, theft, windstorms, and water damage.

What is the Citizens Insurance BBB Rating?

The Citizens Security Life Insurance Company has a Long-Term Issuer Credit Rating of good.

Citizens Property Insurance Cost

Citizens may offer more affordable house insurance options than private insurers, despite the average cost of home insurance in Florida being $1,981 per year for $250,000 in dwelling coverage. You can demonstrate that the costs of a comparable policy with private insurers are more than 20% higher than the costs with Citizens to be eligible for coverage.

What are the pros and cons of Citizens Insurance?

With Citizens, a significant gap in the Florida insurance market is filled. However, some homeowners might not have the luxury of choosing the best coverage since they have so few options. You might not have many options if you are considering a Citizens policy, but knowing the benefits and drawbacks of the insurer will help you navigate coverage. The advantages and disadvantages of Citizens House Insurance are listed below.

Pros

Available for the majority of homes in Florida regions where there are few or no alternative insurance options
It provides independent wind protection.
24/7 reporting of claims

Cons

Quotes must be obtained through an agency.
Premiums will probably be expensive.
The house must fulfill the requirements.

Is Citizens Property Insurance legit?

Citizens Property Insurance Corporation is a 2002-founded, government-created non-profit insurance company with headquarters in Florida. Therefore, if you live in Florida and are unable to acquire private home insurance or if the insurance you do find is unreasonably expensive, Citizens home insurance can be an alternative for you.

Who owns the Citizens Property Insurance Company?

Citizens Property Insurance Corporation is a government-owned, not-for-profit.

What is the financial rating of Citizens Insurance?

The Citizens Insurance Company has a Financial Strength Rating of B++ (Good), as confirmed by AM Best.

Does Florida back Citizens Insurance?

To provide property insurance to qualified Florida property owners who were unable to find coverage in the private market, Citizens was established by the Florida Legislature in August 2002 as a not-for-profit, tax-exempt government company.

Is Citizens Insurance solvent?

Citizens Insurance was insolvent, according to Florida Governor Ron DeSantis. DeSantis also approved a new state law that permits private insurance premiums to be 20% more expensive than Citizen’s rates.

Does Citizens Insurance cover hurricane damage?

Citizens’ entry-level homeowner insurance policy covers storm damage. For hurricane damage, Citizens Property has a separate deductible. This implies that if you file a claim for storm damage, you might have to pay extra out of pocket.