Insurer, Regulator Work To Cap Spiraling Claims Costs

 Tuesday, August 22, 2017

Florida’s Office of Insurance Regulation (OIR) has approved two controversial requests by Citizens Property Insurance Corporation as the company tries to get a handle on rising claims and litigation costs. The OIR has approved a plan to let the non-profit insurer limit coverage on non-weather water claims to $10,000 unless the policyholder agrees to use Citizens-approved contractors in the company’s new managed repair program. Citizens can also waive deductibles on those claims to incentivize the use of the program.
Citizens is projected to lose $85 million this year because of a spike in non-weather-related water-damage claims — claims for leaking pipes, for instance — and other insurers are seeing similar losses in Florida.