Citizens Property Insurance Corp. has started dropping policies of some homeowners across Florida because the estimated price of replacing their homes after a storm or fire would now exceed a $700,000 replacement value cap.
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Rising inflation has cost hundreds of Florida homeowners citizens-policies-dropped-due-to-700k-cap-20220713-fcr7gc6tt5bgjecikjg3efrywu-story.html”access to affordable property insurance.
New data provided by state-owned Citizens Property Insurance Corp., Florida’s “insurer of last resort,” shows that the company dropped 2,267 policies statewide during the 12-months ending June 30 because their homes’ replacement value exceeded $700,000.
That’s the company’s eligibility cap in all counties except Miami-Dade and Monroe, where Citizens can insure homes valued up to $1 million.The caps could be increased in Broward, Palm Beach and other counties if a new study by the state Office of Insurance Regulation finds that homeowners lack access to affordable coverage from private market insurers and have little choice except Citizens. In Broward County over the past year, Citizens sent notices of non-renewal to 617 homes with replacement values exceeding the $700,000 eligibility cap. In Palm Beach County, 454 were dropped.
This story was originally published July 13, 2022 5:35 PM.