As you have likely heard, Citizens has been approved for a number of underwriting changes to further its efforts to reduce their policy count and exposure, including rate increases and coverage reductions for both personal and commercial lines effective early in 2012. Some changes include:

 

Commercial Accounts:

 

Rate Changes - Citizens has received approval to implement new rates for new and renewal Commercial Residential Multiperil(CR-M), CR Wind(CR-W), and Non-Residential Wind(CNR-W) policies. Rate changes will vary by policy type, but are subject to a 10-percent cap, excluding coverage changes and surcharges. No rate change occurred for Commercial Non-Residential Multiperil. CR-M "A-rated" risks in Seacoast Zones 1 and 2, are not subject to the 10% cap, will have increases of 20.6% and 14.1% respectively.

 

Commercial Rule Changes - To be consistent with the other lines of business, CR-M building coverage limits now will be based on 100 percent of the replacement cost value for each separately scheduled building. Building coverage limits previously could be written for 80 to 100 percent of the replacement cost value. Commercial Residential Multiperil (CR-M) underwriting rules are being revised to require that building coverage limits must be 100 percent of the replacement cost value for each separately covered building. This change will affect policies that take effect on or after January 1, 2012.

 

The actual cash value (ACV) loss settlement endorsement option for CR-W buildings is no longer available. All buildings must be written at 100 percent of replacement cost.

 

Citizens now requires that a new question be answered on applications for commercial condominium units to indicate whether the unit is located in a residential or commercial condominium association building. The type of association in which the unit is located will determine which commercial unit owner coverage form(s) applies to the commercial unit's policy.

 

Form and Application Changes - Commercial Multiperil (CR-M and CNR-M), Commercial Wind-Only (CR-W and CNR-W) - Citizens has revised the language and content of our CR-M and CNR-M forms. The specific changes vary by policy type.

 

Personal Accounts:

 

Now Excluded, whether attached to the dwelling or not: certain carports, screened enclosures, patios and awnings, slat houses, chickees, tiki huts, gazebos, cabanas, or similar structures.

 

Increased rates for Sinkhole Loss coverage- Coverage options are available to assist in decreasing your total policy premium, including removing Sinkhole Loss coverage from your policy altogether or increasing your Sinkhole Loss coverage deductible. Inspections: Counties requiring a sinkhole inspection for coverage will expand from 4 to 16.

 

Flooring Damage - special limit of $10,000. Maximum (PR-M) for chips, scratches, dents to less than 5% of total floor surface.

 

Please contact us should you wish more detail, or to discuss Citizen's changes for 2012.