Citizens to write more commercial policies - Tampa Bay Business Journal:

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On June 1, Citizens is expectex to takeover the policies ofthe state-ruj (JUA) and launch of an expansio n of Citizens' program for windstormj commercial policies. Citizens has set a 1 target date for a statewide Citizens prograkm to include coverage for allproperthy damages, in addition to windstorm, and be able to writd the first $2.5 million in coverage on commercialk buildings valued at up to $20 million. Citizenws also would be able to provide windstorjm and other property policies on eligible properties anywherr inthe state.
Since its 2002 Citizens' commercial property business has been limitedf to policiesof $1 million in coverage - only in coastaol zones and only for customers who have a maximumm $1 million in commerciall property holdings in Florida. The insurance bill the Legislaturew passed in January gave Citizenss authority to write commercial policies largerthan $1 to write those policies with coverage in additionj to windstorm and do business throughout the The Legislature told Citizens to start by taking over the businesx of the commercial JUA. The Legislaturw said it hopes an expansion of Citizens will help numerou owners of smaller properties who have been havintg difficultyobtaining policies.
The JUA, whichy began business in September and hasaboug 50,000 policies, has been able to write policies as large as $1 million for all property coverage in all areaas of Florida. As with JUA customers can have amaximum $1 milliojn in property in the state. When Citizensw becomes able to startwriting windstorm-only commercial policies in all areasw of the state, it will be able to writw up to $1 million in coverage on buildings with owners who have commercial holdings of $10 milliob or less in Florida.
Thoswe customers will be able to get policies on more than one That program is to merges into what Citizens callsits "multi-perilp program," which the insurer said it hopes to begin on 1. In its programs with $1 millionb and later $2 million in coverage, Citizend is to cover damages up tothosd amounts. The insurer said it expects othe insurance companies will write policies coverint levels of losses abovethat amount. The progra m set to start Sept. 1 also is to offer risk, loss of business income and extrexpense policies. Citizens said it is preparing details. In the post-Septembere program, there is to be no maximum Florid holdings limitfor policyholders.
Citizens did not disclosed an estimate of how much commercial businessz it expects to write this year andin 2008. "Ww expect it will be substantial," Citizense spokesman Rocky Scott said, notingh widespread demand among smallerproperty owners.