Are you among the numerous Florida homeowners insured by last resort option Citizens? If so, you may notice increased rates as well as policy changes in 2018. The state-run insurer’s Board of Governors recently gave the okay on these higher rates and changes to tackle assignment of benefits (AOB) abuse, non-weather water losses, and litigation costs. Homeowners will face an increase of just over five percent, a number that may continue to rise.
Among the policy changes, there will be a maximum $10,000 cap on repairs due to water loss for customers who choose to decline participation in the Citizens Managed Repair Program, a network of insurer approved contractors. There are also changes in place regarding obligations to third parties that choose to accept AOB. Currently, contractors that accept an assignment do not have to follow the same obligations, such as permitting Citizens approved adjusters to investigate claims within a certain timeframe or showing proof of loss.
Should the Florida Office of Insurance Regulation approve the Citizens changes and rate increases, they are expected to go into effect in February of next year.
This information is provided by Miami insurance attorney Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.