The board of governors at Citizens Property Insurance Corporation recently approved a $1.8 million contract with a company tasked with taking a look at the insurer’s ever increasing claims related to water damage in an effort to determine whether excessive charges are involved. The decision was unanimously approved.
According to the chief of claims at Citizens, the goal of the new contract is to “identify inflated or excessive charges on invoices from contractors that have performed water damage restorations for Citizens’ policyholders and to contest or adjust invoices so it comports with industry standards.”
Increasing claims of water damage continue to be a major concern for Citizens, a property insurer that’s backed by the state of Florida. Citizens plans to increase the rates for its more than 400,000 policyholders by over six percent, using these water damage as their reasoning behind the necessary premium rate hike. However, Citizens also expects that all policy holders that sustain water damage immediately mitigate their damages. This may require the services of a water mitigation and restoration company. It’s Citizens conflicting policy provisions and its efforts to reduce the amount it pays for water damage claims that leaves policy holders confused and conflicted.
As a result of the water damage claims in Southeast Florida, Citizens policyholders may be faced with a rate hike of nearly ten percent. This hike will be discussed at a public hearing in August, with the insurer’s board of directors making its decision in September.
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