Every Floridian knows the value of appropriate homeowner's insurance coverage: the warm sun and beautiful weather that normally characterize the Sunshine State can unexpectedly give way to hurricane winds, tropical storms and even sinkholes that cause extensive property damage.
But what about homeowners who are unable to find needed coverage? For these property owners, Citizens Property Insurance Corp. provides a much-needed safety net.
What is Citizens Insurance?
Even though Citizens Property Insurance Corp. has grown to be Florida's largest property insurer, serving almost 1.5 million customers, many state residents are unfamiliar with the state-backed agency.
Technically speaking, Citizens is a not-for-profit, tax-exempt, government corporation. It operates subject to statutory requirements and a government regulatory scheme, and is administered by a board of governors appointed by Florida's Governor, the Speaker of the Florida House, and Florida's Chief Financial Officer. According to the Citizens website, their corporate mission is to "serve the people of Florida by providing property and casualty insurance protection and superior customer service."
So why is Citizens needed? The cost of insurance and its increasing unavailability in many areas of Florida have been troublesome issues for years. As insurance companies began to pull out of the Florida market due to the high number of hurricane and sinkhole property damage claims, many property owners were left with few options.
Back in 2002, two existing state-backed insurance pools were combined to form Citizens Property Insurance Corp. At first, Citizens acted solely as an insurer of last resort for homeowners and others unable to find coverage in the private insurance market. Now, some customers are allowed to keep their Citizens policy even if an assuming carrier enters the market to take the risk from Citizens.
In most respects, Citizens operates like any other insurer, with property owners paying premiums, submitting standard claims and fighting denial with the help of a Tampa insurance attorney.
Citizens Controversy
Despite over half a decade without a hurricane in Florida, property insurance premiums have continued to soar. But, experts caution that these higher rates may still not be enough to keep Citizens afloat in the wake of a catastrophic storm or a string of destructive hurricanes. If Citizens were to become insolvent, Florida taxpayers would have to make up the shortfall, and those insured by Citizens could be assessed on their personal property and vehicle policies.
Yet, legislative reforms are ongoing, and unless unusually severe weather threatens the state, Citizens will continue its business as usual into the foreseeable future. If you have an unresolved claim against Citizens or any other Florida insurer, contact an insurance litigation lawyer today to discuss your legal options.
