FL Citizens Program: BIG changes in 2009 that could affect your clients!

The state controlled Citizens Property Insurance Program is going through some major changes in 2009 to reduce their exposure in Florida. If your clients are purchasing homes in the ‘wind pool' (or high risk wind zone), they need to be aware of these changes. This program, which was once a market of last resort, is tightening their guidelines for existing and new policies. The following homes are now ineligible through Citizens effective 1/1/09 for new business and 7/1/09 for renewal:

• Homes valued under $750,000 with: shingle roof 25+ years; tile/metal/other roof 50+ years; vacant/unoccupied residence; 4 or more mortgages.
• Homes valued $750,000 to $1,999,999: no opening protection (ie. shutters or impact glass); single roof 25+ years; tile/metal/other roof 50+ years; vacant/unoccupied residence; 4 or more mortgages.
• Homes valued over $2,000,000: all homes and condos ineligible!!

These new guidelines will affect thousands of homeowners in Collier and Lee counties alone. Where will these homeowners with over $750,000 in value and no shutters go for wind coverage? I give my clients three options:

• Obtain shutters! There is no denying that this will be expensive. However, by doing this, you will not only be eligible for Citizens, but you will also be able to add wind coverage onto your home policy. Some companies only required pre-cut plywood as approved opening protection which is MUCH less expensive than aluminum panels.
• Find a carrier that is willing to include the wind coverage on the home policy without requiring shutters. These companies are few and far between and tend to be more expensive but at least they will offer the coverage.
• Self insure for wind coverage. As an agent, I would never recommend this coverage to anyone who would be strained financially if they had to rebuild their home out of their own pocket.

I hope that this information is helpful. If you ever have any questions or concerns regarding personal insurance, please don't hesitate to contact me.

Until next time,

Ron