Wednesday, August 6, 2008
350,000 need to reapply for hurricane insurance
TALLAHASSEE, Fla. (AP) -- The state-created corporation that's become Florida's largest property insurer says about 350,000 wind-only policyholders will have to reapply for coverage over a yearlong period that begins in February.
The procedure is part of a switch to a new computer system by Citizens Property Insurance Corporation.
Executive Vice President Suzanne Murphy says it's expected to be more cost efficient and result in easier to understand policies.
A notice will be sent out six months before a policy expires, but it cannot be renewed until 60 days or less before the expiration date.
Murphy says citizens cannot automatically renew the policies because the insurer now uses a single policy form for all types of homes. The new system has separate forms for various types of dwellings such as single-family homes, condominium units and mobile homes.
The switch affects wind-only customers in coastal areas. About 800,000 customers covered by Citizens for all perils, including fire and theft, already are on the new system.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
