Citizens Rejects 90,000 Requests for Property Insurance Discounts from Florida Customers

by Isaac Benmergui, Esq on September 12, 2012

Citizens Property Insurance, the last-resort insurer for Florida homeowners, rejected 90,000 reports from inspectors hired to recommend whether customers were eligible for property-insurance discounts. The rejections resulted in $50 million in higher premiums for customers. Some premiums even doubled.

As Citizens spokeswoman said the company was only making certain that policyholders received the correct credits for storm damage mitigation features installed on their homes. Yet, three out of four homeowners lost credits for features that fortify homes against hurricanes. Citizens is only permitted, by law, to levy 10 percent annual increases, but many homeowners received bills far above the limit.

Customers in Broward and Palm Beach County, claim the reinspection program is a ruse to simply have an excuse to raise premiums and have filed a class-action lawsuit alleging program coordinators withheld payments to the inspectors until reports were changed that disqualified customers for the credits.

Citizens is Florida’s largest property insurer with more than 1.4 customers.

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The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email for more information or to set up an appointment today.



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