In this market we are finding ourselves discussing Citizens with our community association clients more frequently than ever before. Citizens is the market of last resort for property insurance in Florida and while it is a necessary program there are numerous items that need to be considered prior to making the switch.
-Citizens Coverage Deficiencies:
Citizens does not offer meaningful coverages that you likely have in your current property policy including:
Ordinance or Law: Citizens does not offer coverage for ordinance or law (code compliance) following a loss. Items that fall in this category include impact windows, roof straps, updated plumbing, updated wiring etc.
Coinsurance: All Citizens policies contain a coinsurance provision as opposed to “agreed value”. This means that following a loss Citizens reserves the right to reduce your claim payment if they determine that your building(s) were underinsured.
-Citizens Quoting Requirements:
Prior to placing coverage with Citizens there are a number of underwriting items that must be updated including:
Appraisal: Must be no more than 12 months old.
Wind Mitigation Forms: Must be no more than 5 years old.
-Citizens Roof Age Eligibility:
Citizens has very strict roof age requirements. If your community is considering Citizens I would encourage you to review your building(s) roof age well in advance of your renewal to ensure you are in compliance.
-Andrew Massie, CPCU | Condo/HOA Insurance Specialist | Email: AMassie@plastridge.com | 561-801-0577
