Everyone who is a considered a citizen is entitled to citizen property insurance. Citizen property insurance is an insurance coverage type purchased by citizens of a country or state.
Citizen property insurance helps protect citizens from loss of property. Citizen property insurance also covers property damages caused by natural calamities like hurricanes, fires, earthquakes, and the like. For the “loss” clause in citizen property insurance, crime coverage is also included.
How does a citizen property insurance policy protect you?
Citizen property insurance can protect you in many ways. First, citizen property insurance offers protection against economic or financial loss. This means that with a citizen property insurance, damage or loss is measured in purely financial terms and compensated by money.
For example, your car or automobile is damaged. Citizen property insurance can pay for the cost of its repair. Similarly, citizen property insurance can also cover the cost of replacing that damaged car with a new one, in case repairs aren’t enough. Citizen property insurance can also cover the cost of reconstructing a building that has been damaged by fire or earthquake.
Despite the many benefits of citizen property insurance, it is also important to consider there are limitations involved. There are many types of damages or losses that cannot be covered by citizen property insurance. Since citizen property insurance is expressed on purely monetary terms, losses such as the emotional loss or the loss of a loved one, cannot be compensated by citizen property insurance claim. Thus, when you purchase a citizen property insurance, you are only insuring the economic value of your property.
How are citizen property insurance companies regulated?
There are many government agencies that regulate how citizen property insurance companies operate. In the United States, citizen property insurance companies are regulated primarily by the individual states. These agencies are sometimes called “Department of Insurance”, “Division of Insurance”, or “Insurance Bureau” and may differ in each state.
In the state of Florida, their legislature has passed a law in 2002 combining the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Underwriting Association (FWUA). The result of this combination was the newly established Citizen Property Insurance Corporation.
The creation of the company made citizen property insurance provision more effective and efficient. Florida homeowners are especially at high risk of damage and property loss since the area is a magnet for many hurricanes and storms. The citizen property insurance therefore offers homeowners the kind of coverage which is not usually found in the open, citizen property insurance market.