Florida’s Citizens Offers New Commercial Nonresidential Policy

Article

Florida’s state-backed Citizens Property Insurance Corp. has begun offering a commercial nonresidential multi-peril policy for business. This new policy is available to eligible nonresidential risks located statewide.

Legislation passed in 2007 required that Citizens develop a plan to transition the existing wind-only policies of the Property Casualty Joint Underwriting Association to Citizens and required that Citizens offer commercial nonresidential coverage (including the perils of windstorm and hail) that was previously provided by the PCJUA. In addition, Citizens was required to begin offering commercial nonresidential insurance for basic property perils coverage.

As of Nov. 14, 2008, Citizens stopped accepting new Commercial Nonresidential Inland Wind-Only (CIW) applications through its service provider, ICAT Managers, and all outstanding quotes expired on that date. ICAT will, however, service all existing policies through their expiration dates.

Highlights: Commercial Nonresidential Multi-Peril Program from Citizens

Building: $2.5 million
Business Personal Property: $2 million
Business Income & Extra Expense: $500,000 per building subject to 1/6 monthly limitation
First loss coverage on properties valued in excess of maximum coverage limits available
Commercial property risks located inside and outside of wind-eligible areas
Risk must be unable to obtain coverage from an authorized insurer*
Maximum building replacement value: $20 million per building
Maximum business personal property replacement value: $20 million per risk/building
Maximum Business Income & Extra Expense exposure: $10 million per risk/building
Basic Causes of loss are covered
Applications must be submitted unbound for approval
Perils of windstorm and hail are included and may not be excluded
Replacement cost coverage is provided for buildings, business personal property and personal property of others
Photos and appraisals are not required, as inspections will be performed on every risk; inspection fees apply
A Commercial Nonresidential appointment is required for this line of business