Citizens Policies up to $1 Million Remain Eligible in Miami-Dade and Monroe
The Office of Insurance Regulation has determined there is not a “reasonable degree of competition” in Miami-Dade and Monroe Counties for homeowners with dwelling limits exceeding $900,000 or for condominium unit owners with combined dwelling and contents limits over $900,000. As a result, Citizens Property Insurance Corporation will continue to make coverage available to these policyholders in Miami-Dade and Monroe Counties.
In accordance with Section 627.351(6)(a)3., as of January 1, 2014, Citizens stopped writing homeowners policies with Coverage A limits exceeding $1 million and condominium unit owners policies with combined Coverage A and Coverage C limits exceeding $1 million. The statute further provides that the maximum limits will be reduced to $900,000 as of January 1, 2015; to $800,000 as of January 1, 2016; and to $700,000 as of January 1, 2017. However, there is an exception for policies located in areas where the Office of Insurance Regulation determines that a reasonable degree of competition does not exist. In those areas, Citizens will continue to make coverage available, up to the $1 million limit.
In anticipation of the January 1, 2015, effective date for the reduction to $900,000, the OIR considered whether a reasonable degree of competition exists for homes and condo units that would be insured for at least $900,000 but less than $1 million. The OIR found that Citizens insures almost 97% of such policies in Monroe County and more than 60% of such policies in Miami-Dade County. As a result, the OIR found that the private market is not sufficiently competitive in those areas to warrant ending the coverage option in Citizens.