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Proposals for Reducing Florida Citizens Property Corp. Headed to Cabinet

Citizens Property Insurance Corp. plans to eliminate homeowners coverage on roughly 7,500 coastal homes valued at $2 million or more and reduce the amount of homeowner liability coverage in a measure designed to reduce the size of the state-backed insurer and corresponding risk to Florida taxpayers.

By Brent Kallestad, Associated Press | Updated on December 01, 2011

TALLAHASSEE, Fla. (AP) — Citizens Property Insurance Corp. plans to eliminate homeowners coverage on roughly 7,500 coastal homes valued at $2 million or more and reduce the amount of homeowner liability coverage in a measure designed to reduce the size of the state-backed insurer and corresponding risk to Florida taxpayers.

The underwriting committee, comprised of a voting majority of the Citizens’ Board of Governors, said Wednesday it could reduce the company’s exposure by insuring coastal homes with a value of up to $1 million instead of the current $2 million cap. That would eliminate about 7,500 current high-risk policies. The panel also recommended the company reduce its maximum homeowner liability coverage from $300,000 to $100,000 and eliminate its optional buyback.

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