Citizens Property Insurance Corporation Florida, a non-profit insurance company, in a law passed by the State Legislature was created in 2002. Citizens Property Insurance Corporation Florida was established right after Hurricane Andrew devastated the southern part of the state.
A combination of two state run insurance entities, Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Residential Windstorm Underwriting Association (FWUA), Florida Citizens Property Insurance is aimed at providing insurance coverage for homeowners in high-risk areas.
In addition, for those homeowners who are unable to find coverage from the private insurance market, Florida Citizens Property Insurance provides policies.
Prior to the creation of Florida Citizens Property Insurance, in order to find insurance companies that are willing to offer them insurance coverage for damages or losses due to hurricanes and windstorms, property owners had a difficult time.
Since Florida is located near the Pacific, these two natural disasters are particularly common in the state. Florida Citizens Property Insurance was created to give the property owners the coverage that they require.
The company holds over eight thousand policies for state residents since the implementation of the law that created Florida Citizens Property Insurance. This makes Florida Citizens Property Insurance the second largest insurer of the state.
Several factors are attributed to the astounding growth of Florida Citizens Property Insurance. Due to the new development sin coastal areas, the volume of Florida Citizens Property Insurance policies have significantly increased.
In Florida, the unwillingness of other insurance companies to write new policies for homeowners has also have a factor in rising the number of Florida Citizens Property Insurance policyholders.
Florida Citizens Property Insurance Corporation experienced a major setback when the four hurricanes hit the state more recently. The hurricanes Charley, Frances, Ivan, and Jeanne have cost Florida Citizens Property Insurance Corporation an estimated $1.77 billion in total damages.
The premium price of their windstorm policy of Florida Citizens Property Insurance has increased up to 67 per cent to overcome the loss. This move by Florida Citizens Property Insurance has resulted in a surplus that reaches up t o $1.2 billion. In premium incomes, Florida Citizens Property Insurance is expected to earn $40 million monthly.
