Starting January 1st, 2012 for all new business and renewals, Citizens Insurance Company of Florida is removing coverage for all policy holders. In what many insiders see as a “first round” of coverage reduction, any structure attached or detached on the insured premises with different non-roof like material similar to that of the primary dwelling is being removed. This means screen pool enclosures or lanais, pergola’s, enclosed porches made of tin or other similar roofing will have zero coverage from any peril. These Citizens Insurance Florida coverage changes affect thousands of homeowners across the state.
Because of the economy, both legislators and executive branch leaders have been reluctent to pass any measure that would directly raise the rates of Citizens. However, this backdoor method of stripping coverage may start the ball rolling for again making Citizens the insurance company of last resort. These Citizens Insurance Florida coverage changes represent a troubling trend for Florida homeowners.
According to the Insurance Information Institute, these changes reflect broader market pressures. The official memo sent to agents Nov. 3rd, 2011 said the following:
The following changes apply to personal residential renewal policies with effective dates on or after:
- Personal residential multiperil (PR-M): January 1, 2012
- Personal residential wind-only (PR-W): February 1, 2012
Citizens no longer will provide Coverage A or B for the following structures whether attached to the dwelling or not:
- Screened enclosures that are aluminum framed or not covered by the same or substantially the same materials as that of the primary dwelling
- Carports that are aluminum or not covered by the same or substantially the same materials as that of the primary dwelling
- Patios that have a roof covering not constructed of the same or substantially the same materials as that of the primary dwelling
- Awnings
- Structures with a roof or wall covering that are thatch, lattice, slats or a similar material
- Slat houses, chickees, tiki huts, gazebos, cabanas, canopies, pergolas or similar structures constructed to be open to the weather
Any of the above structures that currently are scheduled under Coverage B – Other Structures will have their increased limits and coverage amounts removed at renewal.
If you are with Citizens Insurance and would like a quote with a private market carrier who will be there for you when you need them, please call me at 1-877-277-2715 or email me at moc.d1776163646erevo1776163646cevil1776163646@sttu1776163646bj1776163646 for a no-obligation quote. You can also learn about common Florida homeowners insurance exclusions to better understand your coverage. We look forward to serving your insurance needs.
Joshua Butts | Founder/Agent at Cornerstone Insurance, Inc.
