05/20/2013
***Be Aware Consumers***
Company officials say Citizens' so-called HO-8 policy offers dangerously limited coverage that could harm unsuspecting consumers. Unlike the standard HO-3 policy, the HO-8 does not cover “water losses,” a fairly common claim area that includes things like plumbing leaks. One of the HO-8 policy options provides only “actual cash value” for damaged property which can be significantly less than the standard “replacement cost” and unacceptable to some mortgage companies.
The HO-8 policy also does not cover “weight of ice and snow,” “freezing,” or “falling objects,” loss claims that are infrequent in Florida. Standard wind damage from a hurricane would be covered.
Florida’s Insurance Consumer Advocate, Robin Westcott, has warned people against flocking to the HO-8 because of the lower rate.
Homeowners could save up to 70 percent on their insurance premium with a new policy offering from Citizens, but only 47 people have signed up for the cheaper coverage.