Florida Keys Insurance
Florida Keys Insurance is always changing. It is important to stay to to date on all the insurance changes so you understand what you need before you buy a home here.
Recently a new sentate bill was passed which effects wind insurance in the Florida Keys. Below outlines the changes and what you need to know about Florida Keys Insurance.
The Citizens Property Insurance Corporation
The Citizens Property Insurance Corporation (Citizens) is the main provider of wind insurance policies in the Florida Keys. Citizens policyholders must be aware of the changes that have been implemented with Senate Bill 2A.
- According to the former law, customers were not required to switch to a private insurance company that offered a more expensive premium. If they chose to do so and the premium was higher than the glide path for Citizens, they could come back to Citizens. Now, policyholders need to leave Citizens upon renewal and go to a private insurance company if the premium is up to 20% costlier than the renewal premium for Citizens. As well, once out of Citizens, the new company can raise premiums by 20% each year and the policyholder won’t be able to return. Moreover, glide path protections are not applicable to private insurance companies.
- The most recent legislation eliminates safeguards for non-primary residences (other than those used as the primary dwelling for a tenant residing for at least 9 months).
- For Citizens policyholders affected by water damage, the onus is now on them to demonstrate that flooding was not the cause.
- Furthermore, Citizens policyholders in flood zones must acquire flood insurance as of April for new contracts and July for renewals. For those not in flood zones, the requirement to carry flood insurance will be gradually implemented over the course of the next four years, depending on the value of the home.
- Previously, Citizens had to pay for the legal bills of an individual who successfully brought a case against the company for refusing or not paying out the full amount of a claim. Now, Citizens does not have this responsibility.
- Nevertheless, the new law keeps the same protection for gradual increases in premiums, with a cap of 11% in 2021, 12% in 2022, 13% in 2024, 14% in 2025, and 15% yearly after that.
- SB 2A decreases the time that insurers have to adjust a claim. This bill reduces the time for an insurer to make a decision and pay undisputed damages from 90 days to 60 days. Additionally, SB 2A cuts the time for an insurer to start an investigation from 14 days to 7 days and it reduces the time for a physical inspection for hurricane claims from 45 days to 30 days.
- This modification will also raise premiums for non-primary residence Citizen policyholders by eliminating the rate “glide path” entirely.
- No insurance provider may grant any part or all of any post-loss insurance benefits to any residential or commercial property insurance policy holder.
Learn: What You Need to Know About Flood Insurance
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