Some Citizens Property Insurance customers may have some private options when it comes time to renew their policies later this year.
Citizens announced today it will be running multi-peril policy holders through a database of private companies beginning today. The new process is open for those customers with renewal dates after November 1.
Multi-peril policies provide customers with multiple protections covering a variety of possible hazards – like farm equipment or machinery.
“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,” Citizens President/CEO and Executive Director Barry Gilway said “Many customers will benefit from more-comprehensive coverage, lower pricing and vastly reduced assessment risk in the event of a major storm.”
Customers who find comparable coverage with premiums less than or equal to their Citizens renewal premium won’t be able to renew their policies with Citizens.
Citizens renewal policyholders who accept private-market coverage through the clearinghouse could come back to Citizens if the private company increases rates by more than 10 percent a year during the first three years.
It’s called the Clearinghouse Renewal Program and is an extension of the Property Insurance Clearinghouse, which launched for Citizens new businesses in January. The legislature created the program in 2013 to help homeowners find coverage in the private market.