Florida Citizens Property Insurance Corp. CEO Barry Gilway says the state-run insurer of last resort is going to improve its mitigation-inspection program while taking a "clean, concise look" at the organization's budget.
In an effort to better its standing with the public and the media, Citizens held a press conference recently in large part to address media reports and concerns from policyholders and agents regarding the insurer's home-inspection program.
Reports highlight homeowners' frustrations with the program, as many have seen mitigation credits for hurricane construction and refurbishment disappear in what the media sees as an effort by Citizens to increase premiums.
But Gilway says that is Citizens' "last objective."
"We want to provide every opportunity for homeowners to get the credits they deserve," he says, while acknowledging that there is disconnect between Citizens and its policyholders.
Addressing that disconnect, Citizens has outlined several changes to the program, starting with better communication with, and education of, policyholders and agents.
One major issue with these inspections is access to an attic to assess roof attachments. Instead of credits being wiped away when there is no access to the attic, Citizens will now provide a follow-up inspection so arrangements can be made to get into the roof space. Also, the insurer will suspend the removal of credits for a year.
Finally, a dispute-resolution process has been enhanced. Homeowners will be informed of their right to argue any inspection finding and asked to call a toll-free number or to contact their agent.
"The real key is the dispute process," says Gilway. "Many don't understand they even have the right [to dispute], let alone how. It was something we absolutely had to fix."
Homeowners will also receive a copy of the inspection results, instead of it being sent solely to the agent, Gilway adds.
In addition, Gilway updated the media about Citizens' ongoing full review of compensation and benefits, the efficiency of its multiple offices, and its alignment with outside vendors.
He dismissed media reports that Citizens' travel expenses were exorbitant. The travel budget is about $3.4 million—a fraction of Citizens' overall $2 billion budget.
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