Citizens Drops Limits on High-Value Homes

Florida’s state-backed property insurer is lowering the amount of coverage it provides for high-value properties from $1 million to $900,000, per a 2013 law change.

Citizens Property Insurance Corp. is implementing the change that applies to almost all new and renewal high-value business as of January 1.

The 2013 property reform law lowered limits on Citizens policies. Supporters argued that there is ample coverage in the private market.

Any property that has a dwelling replacement cost of $900,000 or more is no longer eligible for Citizens coverage. The law also applies to single condo units that have a combined dwelling and contents coverage of more than $900,000.

Properties that fall between the $900,000 and $1 million level as of Dec. 31, 2015 may retain their Citizens coverage until the expiration of their current policy.

In January 2016, the coverage limit amount is to drop again to $800,000.

Finally, come January 2017, the coverage limit will be reduced to $700,000 where it will stay.