- 12 Sep
Lawmaker Suggests Rate Reductions for Citizens Policyholders
Citizens Property Insurance is once again in the headlines, and this time it’s catching the attention of lawmakers. According to an article published in The Ledger, one lawmaker believes policyholders should be allowed rate reductions as the last resort insurer devises a plan to tackle the ongoing issue of water damage repair claims. The lawmaker believes policyholders have “lost trust” in Citizens.
A reason for this loss in trust may be the recent decision by Citizens to increase the premiums for homeowners by more than six percent across the state of Florida. The rates will vary based on factors such as the amount of coverage a policyholder has and where their home is located. The insurer cites fraud as well as the ongoing issue with rampant water damage claims, largely in the southeastern part of the state.
The claims involving water damage are tied to assignment of benefits and Citizens has already taken steps to try and deal with the issue. Perhaps most notably is its recent decision to cap water damage repairs not caused by weather at $10,000 for policyholders who decide not to participate in the insurer’s “managed repair” program. These repairs may include something such as a burst pipe, for example.
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