Citizens Property Insurance Corporation, Florida’s leading home insurer, is taking a firm stance on hurricane damage claims. The state-backed company, which disbursed nearly $3 billion across 200,000 policies in the wake of Hurricane Ian, is now requiring policyholders to demonstrate that these funds were indeed used for home repairs. This move could potentially lead to policy cancellations for those unable to provide adequate proof of repairs, even for homeowners who believe they’ve done everything by the book.

The Aftermath of Ian’s Devastation

Hurricane Ian’s destructive path through Southwest Florida left communities like Fort Myers Beach, Sanibel, and Matlacha in ruins. In response, insurance villages were established to expedite claim payments and jumpstart the rebuilding process. However, two years post-storm, Citizens Insurance reports that thousands of policyholders have yet to submit documentation of their repair work.

A Warning to Policyholders

Doug Nellans, an insurance agent with The Insurancenter of Fort Myers, revealed that his agency received a notification from Citizens. The letter emphasized the need for policyholders to verify their completed repairs. “Citizens is asserting that sufficient time has passed for reasonable repair completion, given that claims have been paid. They’re now requesting evidence of these repairs,” Nellans explained. He noted that his agency alone has about 160 clients at risk of policy termination.

Citizens’ Stance on Verification

Michael Peltier, a spokesperson for Citizens, confirmed the company’s position. “Like other insurers, Citizens reserves the right to request proof of repairs,” Peltier stated. Acknowledging the potential difficulties in locating receipts two years post-event, Peltier added, “We’re quite flexible regarding acceptable forms of proof. Photographic evidence of completed repairs is one valid option.”

Implications for Future Claims

As Florida grapples with the fresh damage from Hurricane Helene, this situation serves as a crucial reminder for policyholders to meticulously document all repair work and preserve receipts when filing claims. Citizens has been actively reducing its policy count since Ian and is anticipated to drop thousands more policies in the coming weeks.

Financial Pressures and Rate Hikes

Adding to the complexity of the situation, Citizens has recently proposed a 14% rate increase. This move, coupled with the stringent repair verification process, underscores the challenging insurance landscape in Florida following recent hurricane seasons.

For policyholders, the message is clear: maintain comprehensive records of all storm-related repairs to safeguard your coverage. As the insurance market in Florida continues to evolve in response to climate challenges, thorough documentation may become increasingly crucial for maintaining home insurance policies.