Florida Citizens Property Insurance Corp. is going back tooffering some coverage it pulled back on as part of a massiveproperty insurance bill in 2011, and other recent steps meant toreduce exposure.

SB 408—and the other state-government-supported measures to cutdown on Citizens' overburdened book of business—resulted in several“unintended consequences,” says Citizens spokesman Michael Peltier.Therefore, the last-resort insurer must step into its role toprovide insurance for those with no place left to turn.

Citizens' Board of Governors has approved the changes, whichwould open the insurer's doors to some risks related tosinkholes, new-home construction, and mobile homes.

Peltier says there were “gaps in coverage in the private market”for these risks. No insurance was available in some cases. He saysCitizens will be charging appropriate premiums to reflect theserisks.

The slate of coverage adjustments still needs the approval ofthe Florida Office of Insurance Regulation.

If approved, homeowners with prior sinkhole claims who have madeall sinkhole-related repairs as recommended by an engineer will beeligible for a Citizens policy, with or without sinkholecoverage—whether the prior loss was partial or total.

Homeowners can still get a Citizens policy if sinkhole repairswere made that differ from an engineer's recommendations, but notfor sinkhole-related risks.

Citizens had been cutting off homes that had exceeded or metpolicy limits due to sinkhole activity.

Sinkhole reform was a major component of SB 408, which definedstructural damage from a sinkhole.

A year ago Citizens has additionally cut down on writing someother coverage, such as builders' risk, and carports or othersimilar structures for mobile homes. These actions were takenas Citizens constantly looks for ways to reduce exposure. Theinsurer has become the largest property insurance writer in thestate—a title it was never meant to occupy.

However, feedback from the market made it clear new-homeconstruction risks could not be insured in the private market insome regions, such as Monroe County. And by cutting out carports orscreed enclosures for mobile homes, these homeowners could notcomply with requirements within their communities.

Citizens approved a “targeted” reinstatement of builders' risknot to exceed $1 million for wind-only coverage on single-familyhome in coastal territories.

The insurer will also allow mobile homeowners to buy coveragefor carports and screen-in structures, with a limit of $10,000.