Citizens Provides Reinspection Results
A Citizens Property Insurance Corporation committee recently discussed results of its reinspection program for wind mitigation features. The reinspection of 1500 personal residential risks has identified changes in data for 90% of the policies and changes in premiums for 75% of the policies. The categories of roof cover, roof deck attachment, roof to wall attachment and opening protection each showed error rates of 40% or more. The sample included 958 policies for which premium increases were warranted, and 176 showing premium reductions. The average premium change per policy is $528. In the aggregate, the reinspection program shows a net premium increase of $793,000, and after reinspection expenses of $185,000 should result in increased revenue to Citizens of about $608,000.
Citizens has processed 86 commercial residential multiperil inspections. These reinspections showed 69 policies resulting in data changes and 17 without data changes. Again roof to wall attachments, roof deck attachments, and roof cover/type are among the most frequently misidentified items. The reinspections showed 48 policies for which premium increases are needed and 7 for which decreases are needed. The estimated premium impact is an increase of $750,000, which after expenses will result in a net increase to Citizens of $683,000. The average change per policy is more than $8700.
The commercial residential wind business showed similar results, with 51 out of 55 policies reflecting data errors. More than 72% of the policies showed a need for premium adjustments. The most prevalent errors were in roof cover/roof type, roof deck attachments, roof to wall attachments, and in the replacement cost. Twenty-seven policies warranted increases and 13 showed decreases. The sum of the positive and negative premium changes was an overall increase of $287,000, which less expenses should result in $256,000 in additional premiums to be collected by Citizens. The average change per policy exceeds $5200.