Changes At Florida's State Run Insurance Company May Raise Coverage Costs

It looks like wind storm homeowner's insurance costs may become more expensive for some Florida homeowners come next year. Citizens Property Insurance Corp. officials announced this past Tuesday they will require some 350,000 wind-only customers within the state to reapply for coverage beginning February 1, 2009.

Citizens is the state's insurance company of last resort and has become the largest insurer in Florida covering some 1.2 million customers. The company cited two reasons for the changes. One, they are modernizing their wind only policies and integrating everyone with that type of coverage into their new internet based computer system; and, two, they want to ensure that these homes are insured up to their true replacement cost values.

A synopsis of what most wind-only policyholders need to know includes:

• Citizens will begin notifying customers six months prior to their current policy expiration and will send additional reminders at 120 and 60 days.
• New insurance quotes will be sent out at least 60 days prior to the current policies' expiration.
• Premiums may increase to cover the increased value of the home. Homeowners that are dissatisfied with the new appraisal will be allowed to appeal the valuation.
• Policyholders will be allowed to choose from a variety of payment options.
• Multi-Peril, Condo Association, and Commercial Non-Residential policies are not affected.

Owners of older homes will face the most scrutiny. Those with shingle roofs of 25 years or older and those with other types of roofs 50 years or older will have to replace or repair the roof or have their contractor certify that the roof has at least three years of remaining life. In addition, these homes' policies will be renewed if the owner can provide a contract showing the repairs or replacement will be completed within 90 days.

Citizens recommends that wind-only policyholders, especially those with older homes, should contact their agents immediately to see what they might need to do in order to continue to qualify for their insurance coverage.