Citizen Property Insurance - Florida

[Risky Biz]

Can anyone provide me with the policy forms for Citizens commercial property for a Florida apartment complex? Do they use ISO or have their own forms?

[agencyproducer]

Citizens Property Insurance Corp. is the state's insurer of last resort, and does not use ISO standard forms. Do you have a Wind question?? You can try calling Citizens to get a copy of the form.

How does Citizens decide how much premium to charge?

The basis for Citizens' rates is mandated by Florida law. The law requires Citizens rates to be non-competitive with any standard insurance company, and based on risk. Citizens may not set its own rate structure.

Citizens must submit rates for approval to the state's Office of Insurance Regulation

Assesment:
As a result of last year's unprecedented storms, Citizens Property Insurance Corporation incurred more than $2.4 billion in losses, stemming from nearly 120,000 claims. Because of these losses, Citizens now has a shortfall of approximately $516 million. Under Florida law this amount must be recouped by a one-time assessment on property insurance companies statewide, to ensure Citizens is able to pay claims in the event of future storms.

Source: http://www.citizensfla.com/index.asp

[Risky Biz]

Thank you for the info. I called Citizens but since we, nor our agent, are licensed with Citizens they won't provide the info. We are considering purchasing apartment and other commercial properties in Fl, but I am concerned about the insurance coverage we will have to live with. Do they write blanket, agreed value, replacement cost? Special perils? Or, will we be saddled with inferior coverage that probably won't past muster with our lenders? (We are located in the midwest) Thanks again for any info on this insurer of last resort!!!

[agencyproducer]

If your lender is located in FL, then they know what the insurance climate is like there right now. From a business standpoint, purchasing a major piece of property in FL may not be the best idea. Then again, if the price is right, there is always a market. My suggestion, wait until 11-1-2006 to purchase your property. Right now, property insurance rates in tier 1 & even tier two have trippled over last year in antipication of all the so called named storms we are supposed to recieve this year. If we make it 11-1 under 8 named storm, the rates will drop dramatically. I believe Citizens writes on a replacement cost/agreed amount basis, so come up with your statement of values prior to purchasing. This will give you your TIV (total insurable value) and you can figure your preimium based on the rate. Don't forget that Citizens can asses its members. For example, if you pay $150K for your Commerical Property premium for the 05-06 policy year, Citizen can come back three years later and make you pay additional premium. The other thing to watch out for right now (Named Storm or Wind) coverage. Carriers in FL are excluding it all together or offering coverage with a large dedutible (3% of the total loss or $250,000 whichever is greater). Figure out your statement of values to include your construction, year built, personal property, building values, Business Inturrepion and obtain a quote for insurance before you buy your property.