Citizens in your wallet

[TooFarTampa]

BR, that doesn't make sense to me at all. How will you save money by going with Citizens? Citizens is required by state law to offer the most expensive wind coverage in Florida. If you can get the same wind coverage elsewhere, it automatically will be cheaper.

Somehow I don't think this is an apples-to-apples comparison. If it is, the difference must be in the hazard insurance. Mine is ASI and since I have not had a claim through them, I can't give you a really informed opinion. But my ASI hazard policy is about 1/4 of the price of my Citizens wind policy.

I guess you should examine the policies and see what the coverage levels are and what they cover. For example, Citizens will not reimburse you for lost rental income in the event of a wind damage loss. Private insurers generally will. But you may have to pay more for that portion of the coverage. See if you can look at these two policies as a series of line items and compare them piece by piece, instead of looking at them as lump sums.

We have three different policies on our Seacrest house: Citizens for wind, ASI for hazard and Fidelity (through FEMA) for flood. Having three different companies involved makes it easier for us to see them as separate entities.

 

[Beach Runner]

BR, that doesn't make sense to me at all. How will you save money by going with Citizens? Citizens is required by state law to offer the most expensive wind coverage in Florida. If you can get the same wind coverage elsewhere, it automatically will be cheaper.

The combined quote with Citizens and ASI was less than the Lexington quote that included wind. The quotes were from two different agents with comparable coverage. I have no clue why.

 

[TooFarTampa]

The combined quote with Citizens and ASI was less than the Lexington quote that included wind. The quotes were from two different agents with comparable coverage. I have no clue why.

Then I would ask them before making any decisions. The law states that Citizens wind must be the most expensive of any in the marketplace. If Lexington is charging more for exactly the same coverage, then they are breaking state law.

 

[Beach Runner]

Then I would ask them before making any decisions. The law states that Citizens wind must be the most expensive of any in the marketplace. If Lexington is charging more for exactly the same coverage, then they are breaking state law.

Good idea.

 

[TooFarTampa]

Good idea.

My guess would be that the discrepancy has to do with the fact that with Lexington, you probably have a quote that includes coverage of lost rental income. Citizens will not offer that at all, so the Lexington people may be getting around the law by charging a lot for that portion of the coverage. See if you can get a Lexington wind only quote without coverage of lost rental income, with the same coverage as Citizens. Then you'll have a better idea of what makes them higher.

If it's $1,000 or $2,000 more for that lost rental income coverage, then you have to decide how much risk you can shoulder and whether that coverage is worth it to you.

 

[Beach Runner]

My guess would be that the discrepancy has to do with the fact that with Lexington, you probably have a quote that includes coverage of lost rental income. Citizens will not offer that at all, so the Lexington people may be getting around the law by charging a lot for that portion of the coverage. See if you can get a Lexington wind only quote without coverage of lost rental income, with the same coverage as Citizens. Then you'll have a better idea of what makes them higher.

If it's $1,000 or $2,000 more for that lost rental income coverage, then you have to decide how much risk you can shoulder and whether that coverage is worth it to you.

Thanks. I'll look at that, too. Actually I don't think we've ever been covered for a loss of rental income. I'll have to look at the old policies.

 

[TooFarTampa]

Thanks. I'll look at that, too. Actually I don't think we've ever been covered for a loss of rental income. I'll have to look at the old policies.

I'd love to know what you find out! I'm curious.