The Real Deal Miami

Citizens policyholders owe $5 million in premiums for home inspections

December 09, 2010 01:43PM

Citizens Property Insurance plans to spend $41 million over the next two
years on home inspections aimed at revoking discounts from unwarranted
policyholders. Though state-backed insurers say the inspections are worth it
because the “return on investment” will be $100 million, projections have
policyholders paying $143 million more in premiums. Policyholders already owe
$5 million more because of inspections done this year. Citizens’ contractors
completed less than one fifth of the 44,220 inspections that were assigned, at a
cost of $894,705. Next year, 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. Citizens was criticized earlier this year for how
it hired a contractor to do the inspections, but it said in a report that its
“intent is to provide better quality controls and transparency in 2011 and
beyond.” [Sun-Sentinel]