Citizens Property Insurance Corp., has initiated its Inspection and Outreach Program.  The program was originally started about a year ago and has been the center of much controversy. 

This program started by Citizens Property Insruance is a “catch 22” situation.  It was designed to help the consumers receive appropriate mitigation credits from their roof and their opening protection.  However, upon further inspections that have been performed by inspectors, the consumer is being charged additional premiums from the findings.  These additional charges being imposed by Citizens Property Insurance are due to the inaccurate previous findings by prior inspections.

According to Citizens Property Insurance, they have performed over 40,000 inspections.  As of last year, the increase in premiums was an additional $5 million dollars.  This year alone, Citizens Property Insurance has estimated that the approximate cost of these reinspections will exceed $10 million.  This cost will include staffing and other expenses. 

According to an article written by Julie Patel of the Sun Sentinel, she stated, “The inspections, which aim to check discounts for features of a home that protect it from hurricanes, will include checking the home’s rebuilding cost”. 

Although most policyholders are outraged by the additional premiums being charged, it will allow Citizens Property Insurance the much needed money in the event of a catastrophic disaster.

References:

Julie Patel, (2010, December 9), Citizens Property Insurance revokes discounts, Sun Sentinel