CITON Launches Hurricane/Wind Deductible Elimination Product in Florida

An Indianapolis agency is trying to solve one of Florida's insurance problems - the large deductible required in homeowners' and commercial property coverages. CITON Agency's ZERO SELECT Wind Deductible Elimination Plan will pay 100 percent of the total homeowners' or commercial policy's deductible if damage estimates from a named storm or event exceed the deductible dollar amount. Kenneth Gregg, CEO and chairman of the Indiana-based company, said he spent two years designing and developing the hurricane/wind deductible elimination product.

"Our intent is to cover any wind or hurricane deductibles out there," Gregg said. "As long as they have primary coverage in place, we will write it." Even as a storm is rushing toward the state. "We'll write it 'within the box,'" Gregg reported. "But if it makes landfall within seven days, it's not covered. On day eight, it is covered."

The stand-alone policy is available throughout Florida, with the exception of Monroe County. Premiums are based on standard criteria such as ZIP code, residential or commercial, construction type, year built within certain year spans, deductible amount, and relationship to total insured value of property.

Gregg said a quote takes two minutes, and indeed, he produced two quotes in less time than that during a phone interview. His two sample quotes:

1) Commercial: a high-rise office building in downtown Sarasota, built in 2002, insured for $5 million, with a $150,000 deductible. ZERO SELECT's annual premium cost is $6,750.

2) Residential Homeowners': a newer masonry home, insured value of $500,000, with a two percent deductible of $10,000. ZERO SELECT's annual premium cost is $450.

The policy pays to the policyholder, who in turn would theoretically use the funds to pay-off the deductible to the carrier. Gregg said that processing a claim requires only one phone call and one fax. "As soon as the primary carrier issues a check in excess of the deductible, we process our check within 48 hours," he said.

The coverage is currently available only in Florida, but Gregg said he plans on rolling out the product in Texas, Mississippi, and Virginia as well. CITON has developed relationships with several MGAs in the Florida area and will expand those relationships to other markets throughout the summer. Agents can access the product through one of the MGAs or directly at www.citoninsurance.com.