I just learned something that every Floridian should know. Citizens Insurance confirmed to my insurance agent that it will only pay out the replacement cost of the building at the time of the loss, not the policy limits in the instance that a building is overinsured.
With our housing-market slide and the downturn in property values, how many people are overinsured? How do you fix this? You obtain a property appraisal (about $500) to make sure limits are in line with actual cost estimations. Citizens will not decrease building limits without an appraisal. We did this and saved $3,000 per year on our building.
On flood insurance, we saved $1,000 per year when we got a Flood Estimate Survey (approximately ($125), and our insurance agent shopped coverage. Instead of Citizens giving the billions to other insurance carriers to take policies, perhaps what they should be doing is give the citizens that have been overpaying over the last five years a rebate.
Margaret Murray, Miami Shores