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The Citizens Property Insurance Corporation is a state-owned, not-for-profit company running property and casualty insurance businesses in Florida for homeowners who cannot obtain insurance elsewhere. Florida is one of the few areas where natural disasters are regularities. Private insurance companies are typically reluctant to provide coverage for properties in such hazardous regions; even when they do, the price can be very high.
For example, there were four major storms in Florida in 2004, with total damages exceeding $57 billion. The insurance industry took substantial damage as well. Some private insurance companies even pulled out of the Florida market in the following year.
Citizens Property Insurance and auto insurance in Florida
As mentioned earlier, hurricanes and natural disasters are regularities in Florida; this is the main reason why it can be challenging for homeowners in the state to purchase property and casualty insurance.
Citizens Property Insurance is considered last resort, meaning owners can always choose to buy coverage from this company rather than other private insurers.
The company is indeed a not-for-profit insurer, but it is worth mentioning that the insurance price is higher than all other insurers in Florida. The main reason behind this idea is to avoid competing with private carriers.
Citizens Property Insurance even charged the highest approved rate by the Office of Insurance Regulation to prevent such competition while allowing other private carriers to determine their rates. At that time, insurance agents were not able to write policies through this state-owned insurer if any private carrier would provide the coverage. This company can even cancel coverage and transfer the strategies to any other carrier.
Commonly, homeowners in Florida will find it difficult to get insured by any private carrier. For the company, providing property insurance in a high-risk area is a risky business. Private insurers, therefore, will probably charge very high premium rates.
The good thing is that some insurers still run their business in the state, meaning there is still competition in the market. The price differences between those companies may not be huge, but at least consumers can do some research and comparison before purchasing.
The Florida Office of Insurance Regulation provides comprehensive information about insurance-related issues and all companies available in the state; however, the website does not provide quotes or any comparison tool. You will need to do that by using an online insurance estimator or comparison tool.
Citizens Property Insurance is indeed a state-owned insurer, but the insurance price is the most expensive in Florida. The best thing is that this company will not go bankrupt or have any urgent financial issue following a natural disaster. Furthermore, you are purchasing coverage from a state-owned company, which means that the state will be the one who uses the money.
The most significant advantage is that the process and policy writing procedures are straightforward; every homeowner in Florida can purchase coverage from this state-owned company. Please put in mind that Citizens Property only provides coverage for property and casualty, so you may need to find another company to get your auto or health insurance.
Car Insurance Florida
The risk of natural disasters exists, yet you can always choose to purchase only the coverage that you need. Car damages, as a result of non-accident causes, are usually included in the Comprehensive policy. This type of insurance is, in almost all cases an optional coverage from any company.
Suppose your car is damaged due to natural disasters such as floods or hurricanes. In that case, auto insurance companies will only pay for the damages if you purchased Comprehensive coverage in the first place. The price is possibly high. Florida has a state-owned insurer when it comes to home insurance, but it is not an immediate urgency for non-property insurance.
Once again, auto insurance is not property insurance or part of it, and you are allowed to purchase the non-optional coverage only or along with free ones. The non-optional coverage for car insurance in Florida includes PIP (Personal Injury Protection) and PDL (Property Damage Liability). Personal Injury Protection covers the medical expense and income loss caused by an accident. This type of coverage applies regardless you are a passenger, driver, or simply involved in a car accident.
The PIP even covers your child and other members of the household. Property Damage Liability will cover you if you cause damages to someone else’s property while driving, for example, if you crash your car into someone’s home or vehicle. PDL does not cover the damages to your vehicle. One of the best things about car insurance in this state is the no-fault insurance, meaning your car insurance company will cover your medical expense regardless of who is at fault in the event of an accident.
A car is indeed a property, but Citizens Property Insurance does not provide coverage for vehicles. It is still relatively easy to get your cars insured in Florida, and the market is still very competitive. When it comes to natural disasters, auto insurance companies offer Comprehensive coverage; this policy is designed to cover your losses due to non-accident causes such as vandalism and hurricanes. Other non-optional coverage may include Collision, Towing, and labor, uninsured/underinsured, and rental.
Auto insurance is the same in almost all states; there are only minor differences in rules, penalties, and discounts. Florida is no exception, and the procedures to purchase the coverage are more or less the same between companies. This state is indeed prone to natural disasters but does not have the equivalent entity of Citizens Property Insurance for auto insurance.
Florida Life Insurance and Citizens Property Insurance
Property and casualty insurance is indeed the most difficult one to get in Florida. Suppose you still hesitate about purchasing from Citizens Property Insurance Corporation due to its high price. In that case, you may be able to get a favorable deal from another company or private carrier. Before you decide to make a purchase, you should know some essential things about buying home insurance as follows.
1. Everyone needs life insurance, so you are in the right place
Everybody needs to protect their properties from all possible damages regardless of natural disasters, fire, or vandalism. If you own a house, you will possibly use it for the rest of your life. The price for home insurance can be high, but it is a crucial thing to have. Homeowner insurance is property life insurance. Even when you do not have your place and rent a house, you will still need to protect all your assets, such as furniture and cars.
2. Shop Around and Buy Insurance for an Affordable Price Here
As mentioned earlier, such life property insurance does not come cheap, especially in Florida, where natural disasters are expected regularities. Besides Citizens Property Insurance Corporation, private carriers also provide property insurance at more affordable prices. Also, please remember that Citizens Property Insurance Corporation is the most expensive one. There are many unbiased sources on the Internet to help you find the best deal and purchase sufficient coverage based on your circumstance.
3. Getting an Independent Agent with us
An independent agent is probably the best person you can work with when it comes to insurance. This agent knows about auto, health, and property life insurance too. The best thing is that the agent does not work for the company. He works for clients and will find the most proper coverage, discounts, deductibles, and everything on your behalf. This agent will also be able to write policies for Citizens Property Insurance Corporation when necessary.
Obtain more info at Wikipedia about citizens property and casualty insurance