The first company in Florida to add the $10,000 water damage limit to their policies was Citizens Insurance. The way to avoid the $10,000 Citizens Insurance limit, is to opt into their contractor (MRP) program. This means you will have to use THEIR workers to repair the damage to your house. This means you lose the freedom of using your own contractors.
We have spoken to people who were happy with the work that the Citizens contractors have done, but an EQUAL AMOUNT of people have said they were not satisfied with the work. The main reason Citizens Insurance added this to their policies was to control the scope of work and the cost of the work. Hypothetically you might have $40,000 in damages but when the insurance company hires their own contractor, they can get the work done for much less. They claim that this will lower insurance premiums but the last time I checked, rates have been going up. This is like an HMO system for homeowners insurance.
Since then, a few other companies have followed suit and have put similar caps and limits on water damage. Not all companies give you the option of $10,000 limit or use their contractors. Some companies will put a hard limit on water damage with no option to have the insurance company’s contractor to do the work. It’s just $10,000 in coverage and that is all you get, even if you have 10 times the amount of water damage. Most people do not read their homeowner insurance policy and are only made aware of this terrible limit when they file a water damage claim. Imagine that.
Just be aware that you don’t have to accept their scope of the damage. Don’t let them dictate what’s damaged and what’s not damaged. We can help you with this. There may be some options for you to extend past the $10,000 water limit and we can help assist you through this issue, as well. You need an expert on your side. Call Florida Allstar Public Adjusting, Inc. 954.659.8333