Florida’s Citizens Expanding Clearinghouse to Condo Unit Policies

Starting in December, Citizens will expand its Property Insurance Clearinghouse to condominium unit owners, many of whom will now have immediate access to multiple private alternatives, the company said in its November newsletter.

Beginning December 14, new applications for condominium unit policies will be shopped through the computerized system that attempts to match customers with offers of coverage from private insurance companies.

Existing Citizens condominium policies automatically will be shopped through the clearinghouse to identify private market offers before Citizens can renew the policies.

With this addition, the clearinghouse will work to identify private market coverage options for the three most numerous policy types—homeowners, dwelling-fire and condominium units—which combined represent 57 percent of Citizens personal lines policies, Citizens said.

“Over $4.7 billion of exposure, and the commensurate assessment potential for Florida consumers, has been avoided or eliminated because of the clearinghouse,” said Adam Marmelstein, Citizens director of Market Services, who oversees the clearinghouse program. “The recent addition of two more companies, for a total of 14, helps ensure that the clearinghouse is expanding its ability to help consumers find policies in the private market.”

Launched in 2014, the clearinghouse helps homeowners seeking to purchase new or renewal coverage with Citizens identify private market options that may provide equal or, in some cases, more comprehensive coverage at comparable premiums.

Under the legislatively created program, policies are shopped through the clearinghouse to determine if they are eligible for Citizens coverage.

New customers are deemed ineligible for Citizens coverage if a private company offers a comparable policy at a premium not more than 15 percent higher than Citizens. Existing Citizens customers are ineligible for Citizens coverage if a private offer of comparable coverage is received at a premium equal to or less than the Citizens renewal premium.

Source: Citizens

Topics Florida