Citizens Insurance of Florida: A Comprehensive Guide

Citizens Insurance of Florida is a state-created, not-for-profit insurance company that was established in 2002 to provide property insurance coverage to Florida residents. The company was created as a response to the increasing number of insurance companies leaving Florida after the devastating 2004 hurricane season. Citizens Insurance was intended to be a temporary solution to the insurance crisis, but it has grown into one of the largest insurance companies in the state, serving over 450,000 policyholders.

What Does Citizens Insurance of Florida Offer?

Citizens Insurance of Florida offers a wide range of property insurance products, including:

Aside from these standard property insurance products, Citizens Insurance of Florida also offers coverage for high-risk properties, such as those in flood zones or those with a history of claims. They also offer wind-only policies for Florida residents who have separate coverage for other perils, such as hurricanes.

How Does Citizens Insurance of Florida Work?

Citizens Insurance of Florida operates as a quasi-governmental organization, meaning that it operates independently of the state government but is still subject to certain regulations and oversight. The company is governed by a board of governors, which is appointed by the governor of Florida and confirmed by the Florida Senate.

Policyholders of Citizens Insurance of Florida pay premiums just like they would with any other insurance company. However, as a not-for-profit organization, Citizens Insurance of Florida is subject to certain restrictions on how much it can charge for premiums. This can sometimes make their rates more affordable than those of other insurance companies.

In the event of a claim, policyholders can file a claim with Citizens Insurance of Florida just like they would with any other insurance company. The company will then send out an adjuster to assess the damage and determine the amount of the claim. If the claim is approved, the policyholder will receive payment for the damages.

How Do I Get a Policy with Citizens Insurance of Florida?

If you are interested in getting a policy with Citizens Insurance of Florida, you can visit their website or contact them by phone to get a quote. You will need to provide information about the property you want to insure and the coverage you are looking for. Once you have received a quote, you can decide whether to purchase a policy from Citizens Insurance of Florida or another insurance company.

It is important to note that Citizens Insurance of Florida is considered a “last resort” insurer, meaning that it is intended for Florida residents who are unable to obtain coverage from other insurance companies. Therefore, it is recommended that you shop around and compare quotes from multiple insurance companies before deciding on a policy.

What Are the Pros and Cons of Citizens Insurance of Florida?

Pros

Affordability: As a not-for-profit organization, Citizens Insurance of Florida is subject to restrictions on how much it can charge for premiums. This can sometimes make their rates more affordable than those of other insurance companies.

Stability: Citizens Insurance of Florida is backed by the state of Florida, which provides a level of stability that other insurance companies may not have.

Flexibility: Citizens Insurance of Florida offers a wide range of insurance products and options, including coverage for high-risk properties and wind-only policies.

Cons

Quality of Service: Citizens Insurance of Florida has been criticized in the past for its slow claims process and poor customer service.

Dependency on Florida: Because Citizens Insurance of Florida is backed by the state of Florida, it is subject to changes in state law and regulations, which could impact its ability to operate effectively.

“Last Resort” Status: Citizens Insurance of Florida is intended for Florida residents who are unable to obtain coverage from other insurance companies, which means that not everyone will qualify for coverage.

Conclusion

Citizens Insurance of Florida is a unique insurance company that offers affordable and flexible coverage options for Florida residents. While it may not be the right choice for everyone, it is certainly worth considering for those who are unable to obtain coverage from other insurance companies. By understanding the pros and cons of Citizens Insurance of Florida, you can make an informed decision about whether it is the right choice for you and your family.