Citizens Property Insurance: Everything You Need to Know

If you’re a homeowner in Florida, you’ve probably heard of Citizens Property Insurance. As the state’s insurer of last resort, Citizens provides coverage to those who can’t find it on the private market. But what exactly is Citizens Property Insurance? How does it work? And is it right for you? In this article, we’ll answer these questions and more.

What is Citizens Property Insurance?

Citizens Property Insurance is a not-for-profit, tax-exempt government entity created by the Florida Legislature in 2002. Its purpose is to provide property insurance to homeowners, renters, and business owners who can’t find coverage on the private market. Citizens is Florida’s largest property insurer, with more than 415,000 policyholders as of 2021.

Citizens was created in response to the aftermath of Hurricane Andrew in 1992, which caused billions of dollars in property damage and left many homeowners without insurance coverage. Prior to Citizens’ creation, the Florida government had to step in and provide coverage to these homeowners. Citizens was designed to be a more permanent solution to this problem.

As a government entity, Citizens is governed by a board of governors appointed by the Florida governor and cabinet. Its operations are overseen by the Florida Office of Insurance Regulation.

How do I know if I need Citizens Property Insurance?

If you own a home, condo, or apartment in Florida, you are required by law to have property insurance. Most homeowners find coverage on the private market through companies like State Farm, Allstate, or Progressive. However, if you’ve been denied coverage by these companies or if coverage is prohibitively expensive, you may be eligible for coverage through Citizens.

To be eligible for coverage through Citizens, you must meet certain criteria. For example, your property must be located in Florida, and you must have made a good-faith effort to obtain coverage on the private market before applying to Citizens. To see if you’re eligible for coverage through Citizens, you can visit their website and fill out an application.

How does Citizens Property Insurance work?

How is Citizens funded?

Citizens is funded through a combination of premiums paid by policyholders, investment income, and assessments on all property and casualty insurance policies in Florida. If Citizens experiences a shortfall in funding due to a major storm or other catastrophic event, it can impose assessments on all property and casualty insurance policies in the state to make up the difference. These assessments are typically collected over a period of years and are added to policyholders’ premiums.

What types of coverage does Citizens offer?

Citizens offers a variety of coverage options to homeowners, renters, and business owners. These include:

It’s important to note that Citizens’ coverage is often more expensive than coverage offered by private insurance companies. This is because Citizens is designed to be a “high-risk” insurer, meaning it covers properties that are more likely to be damaged in a hurricane, flood, or other catastrophic event.

How do I file a claim with Citizens?

If you need to file a claim with Citizens, you can call their toll-free claims hotline at 1-866-411-2742. You can also file a claim online through their website. When filing a claim, you’ll need to provide information about the damage to your property, as well as any receipts or other documentation you have to support your claim.

Once your claim has been filed, a Citizens adjuster will be assigned to review your claim and determine the amount of coverage you’re eligible for. If you disagree with the adjuster’s decision, you can request a reinspection or mediation to try to resolve the dispute.

FAQ

Is Citizens Property Insurance the same as home insurance?

Yes and no. Citizens Property Insurance provides coverage for homes, but it’s not exactly the same as traditional “home insurance” offered by private companies. Citizens’ coverage is designed to be more “bare-bones” than private insurance, meaning it covers only the most essential aspects of a home’s structure and contents.

Is Citizens Property Insurance mandatory?

No, but Florida law requires all property owners to have insurance coverage. For those who can’t find coverage on the private market, Citizens is the insurer of last resort.

Can I switch from private insurance to Citizens?

If you’re currently insured by a private insurance company, you can switch to Citizens if you meet the eligibility criteria. However, keep in mind that Citizens’ coverage is often more expensive than private insurance.

How much does Citizens Property Insurance cost?

The cost of Citizens coverage varies depending on a number of factors, including the value of your property and the level of coverage you choose. However, Citizens’ rates are generally higher than those offered by private insurance companies.

How do I apply for coverage through Citizens?

You can apply for coverage through Citizens by visiting their website and filling out an application. You’ll need to provide information about your property, any previous insurance coverage you’ve had, and other relevant details.

Can I get coverage for flood damage through Citizens?

No, Citizens does not provide coverage for flood damage. You’ll need to purchase a separate flood insurance policy to cover your property in the event of a flood.

Conclusion

Citizens Property Insurance provides a valuable service to homeowners, renters, and business owners who can’t find coverage on the private market. If you’re in need of insurance coverage and are eligible for Citizens, it’s worth considering. However, keep in mind that Citizens’ coverage is often more expensive than private insurance, so you’ll need to weigh the costs and benefits carefully before making a decision.