Florida’s Citizens Property Insurance Clearinghouse Expanded to Multi-Peril Homeowners Renewals
Sep 2, 2014
Florida Citizens Property Insurance Corporation (“Citizens”) policyholders with multi-peril homeowners (HO-3) policies approaching renewal will now have these policies shopped through Citizens’ Property Insurance Clearinghouse (“Clearinghouse”) to help them find comparable private-market homeowners’ coverage at rates equal to or less than their Citizens renewal policy.
Starting today, September 2, 2014, Citizens’ renewal customers will have their policies routed through the State-run insurer’s computer-based Clearinghouse before renewal. The Clearinghouse then will seek offers of coverage from six private insurers participating in the program. Additional companies will be added over time.
The first policies affected by the new program will be multi-peril homeowners (HO-3) policies with renewal dates on or after November 1, 2014. As required by Florida law, customers who receive private-market offers for comparable coverage with premiums less than or equal to their Citizens renewal premium will be ineligible to renew their policies with Citizens. Homeowners who do receive private-market offers will be given information about the policy they would receive. Then, their agent will assist in the selection and purchase of coverage from a private-market company that best meets their needs.
Citizens renewal policyholders who accept private-market coverage through the Clearinghouse will have the opportunity to return to Citizens if the private company from which they purchase coverage increases rates by more than 10 percent a year during the first three years. As private-market policyholders, they also will no longer be subject to Citizens’ policyholder surcharges in the event of damage incurred by a major storm.
Citizens’ renewal program is an extension of the existing Clearinghouse, which successfully launched to handle Citizens’ new business in January 2014. The Clearinghouse program was created by the Legislature in 2013 to find private market insurance for homeowners unable to secure any other coverage but Citizens.
“Making the Clearinghouse available for renewal customers is the latest step in Citizens’ effort to help our customers enjoy the benefits of private-market coverage and return Citizens to its role as the state’s insurer of last resort,” said Barry Gilway, Citizens President and Chief Executive Officer. “Many customers will benefit from more-comprehensive coverage, lower pricing and vastly reduced assessment risk in the event of a major storm.”
According to Citizens, today’s launch is the result of months of preparation and co-operation between Citizens, the Clearinghouse software platform vendor and private insurers. Additional information about the Clearinghouse and a list of participating companies can be found by clicking here.
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