Florida Citizens Insurance: Understanding Your Options

Florida Citizens Insurance is a state-run insurance company that provides coverage to those who cannot find traditional home insurance. If you are struggling to find adequate home insurance in Florida, you may be able to turn to Florida Citizens Insurance for coverage. However, before you do, it’s important to understand what Florida Citizens Insurance is and what your options are when it comes to coverage.

What is Florida Citizens Insurance?

Florida Citizens Insurance was created in 2002 to provide insurance coverage to Florida residents who cannot find coverage elsewhere. This may include those who live in high-risk areas, those with poor credit, or those who have had previous insurance claims denied.

Florida Citizens Insurance is a non-profit company that is overseen by a board of governors appointed by the Florida governor. The company is funded through premiums paid by policyholders, and it is required to keep enough money in reserves to pay out any claims that may arise.

How is Florida Citizens Insurance different from traditional insurance companies?

Unlike traditional insurance companies, Florida Citizens Insurance is not allowed to make a profit. Instead, it is required to operate on a cost-recovery basis, which means that it must charge policyholders enough in premiums to cover its expenses and pay out claims.

Additionally, Florida Citizens Insurance is required to offer coverage to those who cannot find coverage elsewhere. Traditional insurance companies are allowed to pick and choose which policyholders they want to cover based on their level of risk.

What types of coverage does Florida Citizens Insurance offer?

Florida Citizens Insurance offers a variety of coverage options, including:

Policy Type
Coverage Details
Homeowners
Covers damage to your home and personal property, as well as liability for injuries or damage to someone else’s property
Condo
Covers damage to your condo unit and personal property, as well as liability for injuries or damage to someone else’s property
Rental Property
Covers damage to your rental property and personal property, as well as liability for injuries or damage to someone else’s property

How do I qualify for Florida Citizens Insurance?

In order to qualify for Florida Citizens Insurance, you must first try to obtain coverage from other insurance companies. If you are unable to find coverage after contacting at least two insurance companies, you may be able to turn to Florida Citizens Insurance for coverage.

However, there are certain eligibility requirements that you must meet in order to qualify for coverage from Florida Citizens Insurance:

  • You must be a Florida resident
  • You must be unable to obtain coverage from other insurance companies
  • Your property must meet certain inspection requirements
  • Your property must be in compliance with local building codes
  • Your property must not have any existing damage or conditions that could lead to damage

What should I know before I sign up for Florida Citizens Insurance?

Before you sign up for Florida Citizens Insurance, it’s important to understand that coverage from this company may be more expensive than coverage from traditional insurance companies. This is because Florida Citizens Insurance is required to charge policyholders enough in premiums to cover its expenses and pay out claims.

Additionally, if you have the option to obtain coverage from a traditional insurance company, it may be in your best interest to do so. Traditional insurance companies may offer more comprehensive coverage options and lower premiums than Florida Citizens Insurance.

Can I switch from Florida Citizens Insurance to a traditional insurance company?

Yes, you can switch from Florida Citizens Insurance to a traditional insurance company at any time. However, it’s important to understand that you may be subject to underwriting and inspection requirements when you switch insurance companies. This means that the new insurance company may inspect your property and assess your level of risk before agreeing to provide coverage.

Conclusion

Florida Citizens Insurance can be a good option for those who cannot find coverage from traditional insurance companies. However, before you sign up for coverage, it’s important to understand what Florida Citizens Insurance is, what types of coverage it offers, and what your eligibility requirements are. Additionally, it’s important to consider whether coverage from a traditional insurance company may be a better option for you in terms of cost and coverage.

FAQ

1. What is Florida Citizens Insurance?

Florida Citizens Insurance is a state-run insurance company that provides coverage to Florida residents who cannot find coverage elsewhere.

2. What types of coverage does Florida Citizens Insurance offer?

Florida Citizens Insurance offers homeowners, condo, and rental property coverage options.

3. How do I qualify for Florida Citizens Insurance?

In order to qualify for Florida Citizens Insurance, you must be a Florida resident, be unable to obtain coverage from other insurance companies, and meet certain eligibility requirements.

4. Can I switch from Florida Citizens Insurance to a traditional insurance company?

Yes, you can switch from Florida Citizens Insurance to a traditional insurance company at any time, but you may be subject to underwriting and inspection requirements.

5. Is coverage from Florida Citizens Insurance more expensive than coverage from traditional insurance companies?

Yes, coverage from Florida Citizens Insurance may be more expensive than coverage from traditional insurance companies because Florida Citizens Insurance is required to charge policyholders enough in premiums to cover its expenses and pay out claims.