Personal Lines Bulletin

Coverage B and C Postcards

syyskuuta 09, 2013 - ATB #014-13

As announced in ATB #007-12, effective May 1, 2012, for new business and June 1, 2012, for renewal business, Citizens reduced the automatic coverage limits for Coverage B and Coverage C on most personal residential policy types. Policyholders were informed of this change via an Important Notice of Upcoming Coverage Changes letter and by a Notice of Change in Policy Terms that was included in their renewal packets.

Although buybacks are available for both Coverage B and C, Citizens has noted that fewer policyholders than expected have taken advantage of the buyback for coverage. This may indicate that some policyholders are unaware of this important change.

In an effort to increase policyholder awareness about the considerable impact this change may have had on their policies and to ensure their property is adequately protected, Citizens is sending postcards to affected HO-3, DP-1 Dwelling, DP-3 Dwelling, HW-2 and DW-2 policyholders who have not already elected to buy back Coverage B and/or C. The postcards will inform policyholders of the Coverage B and C coverage limit changes and will advise them that they may contact their agent to make a midterm policy change to increase their coverage, if they wish to do so. The postcard also will inform the policyholder that any increase in their coverage limits will result in an increased premium.

To reduce the impact on our agents and potential confusion among policyholders who may be aware and/or unaffected by this change, Citizens is not sending a postcard to policyholders who meet the following criteria:

  • Purchased a new policy after May 1, 2012
  • Bought back or declined Coverage B and/or Coverage C
  • Were sent a takeout offer in July 2013


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