Citizens Property Insurance intends to change policy language concerning water damage
Florida’s Citizens Property Insurance is looking to make changes to the language in its homeowners insurance policies in order to mitigate the growth of claims associated with water damage. These claims are beginning to flow from South Florida, where many homeowners are beginning to experience water damage from various issues, ranging from rainfall to faulty plumbing. The changes that Citizens Property Insurance wants to make will adjust the way water damage claims are handled.
Changes must be made in order to mitigate future costs associated with water damage
Barry Gilway, CEO and president of Citizens Property Insurance, suggests that the changes are necessary. Without these changes, Citizens would be forced to take more drastic action in order to reduce costs associated with homeowners insurance coverage. The insurer has been bogged down by many serious issues over the past few years, with these issues having an impact on its financial standing. In order to mitigate losses, Citizens has been shedding policies, moving consumers to other homeowners insurance providers.
Proposed changes to homeowners insurance policies will introduce new limits to consumers
One change that Citizens is looking to make is to shorten the time policyholders have to report non-hurricane water damage, reducing the time to 72 hours. Citizens is also looking to introduce a limit of between $2,500 and $5,000 on the initial payout for emergency services. Homeowners insurance coverage would also be limited to replacing only areas that have been damaged by water, such as the area around a leaking pipe.
Changes must be approved by state regulators before they can take effect
The changes that Citizens Property Insurance wants to make will have to be approved by the Office of Insurance Regulation. The changes have received support from the Florida Chamber of Commerce and the Personal Insurance Federation of Florida. Critics of the changes claim, however, that Citizens is proposing an incomplete solution to its financial concerns. Some suggests that Citizens can take more reasonable steps in mitigating the costs it sees from providing homeowners insurance coverage.