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Citizens Insurance Florida For Hurricane Coverage

citizens insurance floridaThe storm is one of the most catastrophic natural disasters anywhere in the world. In some places, however, hurricanes occur quite frequently and regularly every year, such as in Florida. Besides its catastrophic consequences to homeowners, the disaster forces insurance companies to provide an enormous amount of payout. To some extent, insurance companies may avoid providing coverage at all, but Citizens Insurance Florida as a non-profit state-owned corporation helps to create laws to protect homeowners and make sure everyone gets fair access to insurers in the state.

Coverage for Hurricane

By law, all property insurance companies providing coverage for homeowners must give financial protection against windstorm damage caused by a hurricane. In other states, some natural disasters are excluded from homeowners insurance, meaning you need to purchase it separately. In Florida, Citizens Insurance and the state’s government apparently make it mandatory for every insurer to provide a price for windstorm coverage. The protection will include all damages caused by a hurricane from the exterior to the interior. Hurricane coverage must also include damages caused by rain, snow, and dust.

Although hurricane coverage has always been an expensive issue in Florida, insurance companies and state-owned Citizens Insurance offers some good discounts as well. If homeowners install wind-resistant features, they are eligible for discounts. The second law is that all insurance companies must notify or inform policyholders about the discount. There are many diverse types or models of constructions that give a wind-resistant advantage, and the maximum discount can reach up to 42% reduction from the actual cost.

While insurers are required to include hurricane protection in homeowner insurance, it is possible to set a different deductible for that particular disaster. The amount of deductible is set by law as follows:

1. For a house worth up to $100,000, the maximum deductible is 2% of the home’s value
2. For a house worth between $100,000 and $500,000, the maximum deductible is 5% of the home’s value
3. For a house worth more than $500,000, the maximum deductible is not limited

Citizens Insurance Florida

Officially called Citizens Property Insurance Corporation, this state-owned organization helps residents of Florida to get easy access to homeowners insurance regardless of how open your house is to a hurricane. Although the laws and regulations are strict enough to keep fair access, some private insurers may avoid providing coverage at all depending on your circumstances.

Those who cannot acquire hurricane coverage via the traditional market are allowed to apply for insurance to the organization. However, the price for coverage set by Citizens Florida Insurance is probably higher than normal; the main purpose is to keep a healthy professional competition between private companies in the market.