Today we learned via Citizens Property Insurance Corporation that a policy contract change, found here, has been approved and is going to be effective soon. If you are a Citizens Insurance policy holder, we encourage you to read through the policy changes below.
Summary of Policy Contract Changes for Water Losses
Effective July 2016
The following policy language changes have been approved by the Office of Insurance Regulation for
Citizens HO-3 (Homeowners), HO-6 (Condo Unit) and DP-3 (Dwelling) policies. The summaries of
changes provided below are for informational purposes only and subject to relevant Citizens policy
Reasonable Emergency Measures
Policyholders must take Reasonable Emergency Measures (previously Reasonable Repairs) solely for
the purpose of protecting their property from further damage. To encourage prompt notice of losses and
prevent abuse, reasonable emergency measures may not exceed the greater of $3,000 or 1 percent of
the Coverage A limit, unless the policyholder first receives approval from Citizens.
To prevent permanent repairs being made prior to Citizens’ inspection, except for Reasonable
Emergency Measures, there is no coverage for permanent repairs that begin before the earlier of:
A. 72 hours after Citizens is notified of the loss
B. The time of loss inspection by Citizens
C. The time of other approval by Citizens
Coverage C – Personal Property
Under Coverage C – Personal Property, the personal property of water or steam is not covered.
Replacement of water in a swimming pool is covered when there is covered loss or damage to the
Collapse coverage states more explicitly that coverage for collapse of a building does not include
coverage for collapse of plumbing that results only from age, deterioration or maintenance.
Perils Insured Against
• Language stating that Collapse is not a Peril Insured Against now includes additional detail to
better describe collapse.
• Accidental Discharge of Water or Steam states that coverage is provided for necessary access
to repair only the portion or part of the plumbing system that caused a covered loss.
• Reasonable emergency measures may include permanent repair when necessary to protect the
covered property from further damage or prevent unwanted entry to the property. To the degree
reasonably possible, the damaged property must be retained for Citizens to inspect.
• Citizens has no duty to provide coverage if failure to comply with duties after loss is prejudicial