Aug 5, 2008 5:57 pm US/Eastern
Citizens Customers Forced To Reapply For Coverage
350,000 Wind-Only Policyholders Affected
Policyholders Have 6 Months To Make Changes
MIAMI (CBS4) ―
There are some big changes coming for Citizens Property Insurance policyholders, specifically, those policyholders with wind-only coverage.
The changes affect Citizens 350,000 wind-only policies in the state of Florida. The state-run insurer says it will discontinue those policies and require customers to re-apply for coverage as the company changes over computer systems.
Citizens officials say it's making the move to guarantee that policyholders have sufficient coverage for a major wind-related loss.
Changes take effect early next year, so policyholders have six months to make the adjustments.
Most rates won't change but any Citizens wind-only policyholder with a shingle roof over 25 years old, a roof installed more than 50 years ago or an insured building that is not on the same property as the primary home, should call their agents to make sure they will qualify for the new coverage.
If major roofing work is required, Citizens said it will issue a new policy as long as the homeowner can provide a contract showing that the improvements have been scheduled.
The changes don't affect full-coverage policies, and condo associations, apartments and businesses with wind-only coverage are not affected either.
Citizens officials say almost all policies will be renewed and that rates, frozen through 2009, will not go up. The only policyholders who will see higher rates will be those whose homes receive a higher replacement cost value.
Find more information about the changes at
citizensfla.com.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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