20180612 - Updated Policy Language and New Coverage Limits for Nonweather Water-Related Losses - Public
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Updated Policy Language and New Coverage Limits for Nonweather Water-Related Losses
June 12, 2018
The Florida Office of Insurance Regulation (OIR) has approved changes to Citizens’ policy language that affect coverage limits for nonweather water-related losses and duties after loss.
The changes apply to the following policy types for new business and renewal policies effective on or after August 1, 2018:
- Citizens Homeowners 3 – Special Form (CIT HO-3)
- Dwelling Property 3 – Special Form (CIT DP-3)
HO-3 and DP-3 policyholders who do not participate in our Managed Repair Program will have limited coverage for nonweather water-related losses.
Revisions to HO-3 and DP-3 Policy Language
|Reasonable Emergency Measures (REM)||For nonweather water-related losses, REM will be limited to $3,000 only and apply to protect Coverage A, Coverage B and Coverage C property from further damage.|
|Perils Against Insured||Nonweather water-related losses will be subject to a $10,000 limit.|
|Duties After Loss |
Note: This applies to DP-3, condominium and tenant contents policies also.
|Claimants other than the policyholder will be required to do the following in order to claim benefits: |
For more information, refer to the coverage forms located in the Personal section of the Agents site.
As announced in the July 11, 2017, Personal Lines Bulletin, Citizens introduced the Managed Repair Program, which includes two endorsements to provide valuable claim services to our policyholders. The endorsements are explained below and are located in the Personal section of the Agents site:
Emergency Water Removal Services (EWRS)
- CIT 04 85 for HO-3 policies
- CIT 05 85 for DP-3 (building) policies
Managed Repair Contractor Network Program (MRCNP)
- CIT 04 86 for HO-3 policies
- CIT 05 86 for DP-3 (building) policies
|If …||Then …|
|The policyholder participates in EWRS||The $3,000 REM limit does not apply, and the services will be paid by Citizens whether or not there is coverage for loss.|
|The policyholder does not participate in EWRS|| |
|The policyholder participates in the MRCNP|| |
The $10,000 limit does not apply.
Note: The $10,000 limit does not apply if the policyholder is not offered the MRCNP.
New PolicyCenter Prompt for Emergency Water Removal Services
When an agent enters a new first notice of loss (FNOL) with a loss cause of nonweather water-related damage, and the policyholder is not interested in EWRS, PolicyCenter® now will prompt the agent to provide a reason for declining the service.
To make affected policyholders aware of the policy changes, Citizens will mail the following communications to them:
- Updated Declarations documents
- An informational letter and brochure, which will be sent after the policy effective date. They will be available on the website at a later date.
For more information, log in to the Agents site and, from the website’s top menu, select Search → Search Frequently Asked Questions (FAQs) and enter:
- Managed Repair
- Emergency Water Removal Services
Citizens provides agent communications online for historical purposes only, and the communications have not been updated to include any changes that may have been made after publication. Agents can find the latest information by reviewing the applicable underwriting manuals, and by logging in and accessing our FAQs, which are available from the top of any page on our website.