Citizens and Water Damage Claims
The State-run Citizens Property Insurance Corp. is fighting back against what they perceive as excessive charges from contractors in Florida. The largest home insurer in the Sunshine State is hiring an outside vendor to oversee the repair estimates from contractors and to negotiate them down. The board of governors have contracted with a Fort Myers based firm Lynx Services LLC “to identify inflated or excessive charges on invoices from contractors that have performed water damage restorations for Citizens’ policyholders and to contest or adjust invoices so it comports with industry standards.”
Citizens has now limited water damage loss to not exceeding the greater of $3,000 or 1 percent of the overall coverage unless Citizens approves additional measures. They are also putting a 72 hours wait after the loss has occurred so that they can inspect the damage before repairs begin. The company can deny claims that repairs begin before that period.
They are claiming that the water damage problem is what is causing them to raise rates. South Florida policyholder will see a rise in premium for 2017 close to 10%, the maximum allowed under state law.