InsuranceDirectRates.com Rating : 4.0 out of 5 Stars

In an ever-changing insurance landscape, Citizens Property Insurance stands as a significant player, particularly in the state of Florida. With an InsuranceDirectRates.com rating of 4.0 out of 5 stars, Citizens Insurance provides a safety net for homeowners in Florida. Many insurance companies are no longer writing policies due to increased risk factors. This review will delve into the pros and cons of Citizens Property Insurance, its financial strength, subsidiaries, historical significance, and what to expect in 2024.

Pros of Citizens Property Insurance

1. Usually the Lowest Price: One significant advantage of Citizens Property Insurance is that it often offers some of the most competitive rates in Florida, providing homeowners with an affordable option for protecting their properties.

2. Covers Those Who Can’t Qualify Elsewhere: Citizens is the insurer of last resort in Florida, meaning it provides coverage for homeowners who can’t find coverage in the private market due to high-risk factors like location or history of claims.

3. More Financial Stability Thanks to Support from Florida Law: Citizens Property Insurance benefits from a level of financial stability due to its unique position as a state-run entity supported by Florida law. This backing allows it to fulfill its obligations even during catastrophic events.

4. Discount for Wind Mitigation Measures: In a state prone to hurricanes, Citizens offers discounts for homeowners who take proactive measures to mitigate wind-related damages, such as installing hurricane shutters or reinforcing their roofs.

Cons of Citizens Property Insurance

1. Personal Liability Included in Default Quote Was Much Lower Than Competitors: Citizens’ default quote often includes a lower personal liability coverage limit compared to some private insurers, leaving homeowners potentially underinsured in certain liability situations.

2. Eligibility Restrictions on Using Its Plans: To qualify for Citizens Property Insurance, homeowners must meet specific criteria, including being ineligible for coverage from private insurers. This eligibility process can limit homeowners’ options.

3. Doesn’t Offer Online Quotes: Unlike many private insurers, Citizens does not provide the convenience of online quotes, making it necessary for homeowners to contact an agent directly to obtain a quote.

4. High Number of Complaints: Citizens has faced a notable volume of complaints, mainly due to claims processing issues and customer service concerns. These complaints reflect a challenging aspect of its operations.

5. Requires an In-Home and Roof Inspection on Renewals: Homeowners insured by Citizens may be required to undergo an in-home and roof inspection during the renewal process, which can be an inconvenience.

Financial Strength and Subsidiaries

Citizens Property Insurance scores in the middle of the pack on our financial strength rating scale. This is due to its A ratings with AM Best and Standard & Poor’s, and an A1 rating with Moody’s. While these ratings indicate solid financial stability, they are not the highest available in the industry.

Financial Data (2022)

Revenue: $1,897,811,815 (premiums)

Disbursements: ($2,446,392,132) (operating loss)

Expenses: $4,344,203,947 (claims)

Endowment: $4,279,523,790 (reserve balance)

History of Citizens Property Insurance

Citizens Property Insurance was established in Florida in response to the need for property insurance coverage in high-risk areas, particularly those vulnerable to hurricanes. It was created as a government-backed entity to provide coverage when private insurers became reluctant to insure properties in Florida due to increased risks.

Since its inception, Citizens Property Insurance has played a crucial role in stabilizing the insurance market in Florida. It has provided coverage for homeowners who couldn’t secure policies from private insurers and has been an essential safety net in times of catastrophic events.

What to Expect in 2024

As we look ahead to 2024, it’s essential to consider the evolving landscape of property insurance in Florida. Citizens Insurance is likely to continue its role as a vital insurer for homeowners in the state. However, with the increasing frequency and severity of natural disasters, insurance rates are expected to rise.

It’s anticipated that Citizens Insurance will follow this trend, with rate increases likely to be implemented by the third quarter of 2024. This adjustment is necessary to ensure the financial stability of the insurer and its ability to meet its obligations to policyholders, especially in the face of potential catastrophic events.

Citizens Property Insurance remains a significant player in Florida.

They offer affordable coverage to homeowners who face challenges securing insurance from private carriers. While it has its cons, its financial stability and historical significance make it a crucial Insurance Company in the state. As we move into 2024, rate increases are expected, reflecting the evolving risks in the Florida insurance market.

For homeowners in Florida, it’s essential to review your insurance options regularly. Please consider the changing landscape to ensure you have the coverage you need. At InsuranceDirectRates.com, we are here to assist you in reviewing and comparing rates, ultimately helping you save money