Updated Policy Language and New Coverage Limits for Nonweather Water-Related Losses
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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
Section
Conditions
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:
Provide documentation that substantiates the claimant’s right to bring a claim under the policy
Provide documentation that details, itemizes, and substantiates the scope and amount of loss for which the claimant is making a claim
Participate in appraisal or other alternative dispute resolution method
For more information, refer to the coverage forms located in the Personal section of the Agents site.
Endorsements
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
Coverage for REM is limited to $3,000.
Payments made from the $3,000 REM limit will be deducted from the $10,000 water limit for policyholders who also choose not to participate in the MRCNP.
Notes
If additional water mitigation services are needed, the policyholder can still participate in EWRS.
The $3,000 limit does not apply if the policyholder is not offered 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.
Policyholder Communications
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.
Resources
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:
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.
