Following the extension of the moratorium on cancellations and non-renewals in effect at the start of the pandemic, Citizens Property Insurance Corp. announced that it will resume processing it from February 1, 2021.
The Florida insurer of last resort said in a bulletin to agents that at its December meeting, the board of governors approved the lifting of the temporary moratorium imposed in March 2020 to remove the burden on policyholders due to COVID-19 health risk.
Cancellations and non-renewals for policies exempted due to COVID-19 health risk will be processed on February 1. After that date, Citizens will only make exceptions for those policyholders who are still affected by loss of employment, reduced wages or business income, or other monetary loss realized during the emergency and that directly affect the policyholder's ability to make payments .
The company said this is a standard similar to the one used in Governor Ron DeSantis's executive order, which tightens the criteria in previous warrants for exemption from foreclosure sales and evictions.
Citizens will continue to offer temporary payment plans for affected policyholders to select by January 31, 2021. Quarterly payment plans will remain available to policyholders starting February 1. After January 31, new payment plans would only be offered to policyholders who continue with loss of employment, reduced wages or business income, or other financial loss.
Citizens have begun sending invoices for each policy term to the party leader (mortgagee) and direct-billed policyholders with premium arrears of $ 5 or more. The total overdue premium is due on Jan. 31, 2021. Citizens said it would email affected agents a list of their overdue policies billed immediately and billed on the list by Jan. 31, 2021, with more information.
Citizens said that as of November 30, 2020, payment exceptions had been made on 30,799 policies (6.04% of policies) for a total of more than $ 24 million. The insurer also made 25,857 underwriting exceptions for 10,678 new business policies and 15,179 existing policies.
Citizens originally planned to end his moratorium last summer, but reiterated his decision after Florida CFO Jimmy Patronis urged the insurer not to cancel customers' policies during hurricane season and the ongoing COVID-19 pandemic.
“The hurricane season is just starting to heat up and we are in the middle of an unprecedented health and economic crisis. Now is not the time to cancel citizen's home insurance policies, & # 39; & # 39; said Patronis on July 24.
Citizen program for alternative documents and deferments, as outlined in the April 3 Update on the response to the coronavirus health risk, also ends on February 1.
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