Agents welcome Citizens expansion of small commercial coverage statewide

Citizens Property Insurance Corp. is expanding its insurance coverage for small businesses beyond coastal areas to properties across Florida.

“Our goal is to make coverage available as quickly as possible to the Florida small business community which is in dire need of commercial coverage,” said Chairman Bruce Douglas.

Florida lawmakers directed the statewide expansion of Citizens’ commercial, non-residential policies during a special session in January. Citizens currently writes commercial non-residential coverage only in high-risk coastal areas.

Jeff Grady, president of the Florida Association of Insurance Agents, said the expanded coverage will fill a void. “I think it’s a positive step,” Grady said. “Unfortunately the private market has become an unaffordable option for many small businesses.”

Grady said the private market is not responding at lower levels, especially for wind coverage: “Businesses can’t get the coverage, or the available coverage bankrupts them — and it’s usually under the limits that they need,” he said.

Beginning in June, Citizens will provide up to $1 million in wind coverage to businesses with no more than $10 million of total insured value. Douglas said it was important to get the coverage in place by the start of hurricane season.

By Sept. 1, Citizens will offer a commercial multi-peril policy throughout the state that includes wind coverage. This will provide the first $2.5 million of building coverage for structures with a value of $20 million or less.