Nearly half of appealing owners get relief from Citizens [Sun Sentinel]

Oct. 01--Almost half of the Florida homeowners who contested discounts revoked by Citizens Property Insurance Corp. succeeded in having some or all of them restored.

But it wasn't easy: The great majority -- 86 percent -- had to submit more proof that they deserved the wind mitigation discounts from the state insurer of last resort.

It requires persistence, patience and proof, said homeowners like Jim Walsh of Deerfield Beach.

"You just have to watch 'em," said Walsh, who appealed the loss of discounts involving his roof and side doors. "Some people will fight, but some don't understand it. Not everyone is knowledgeable enough or mean enough to fight back."

The tough process may have persuaded many from even trying. Less than 4 percent of 152,601 owners who had home reinspections completed before March 31 appeal.

Of the 5,638 policyholders who asked for re-consideration -- 46 percent prevailed in getting at least some of their discounts back, according to Citizens. Most of those 2,611 policyholders will get only partial credit for the discounts yanked away, according to data from the insurer.

Citizens could not supply a breakdown of where the appeals were coming from, but more than four out of 10 Citizens policies are in Broward, Palm Beach and Miami-Dade counties. Citizens has 1.47 million policies in Florida.

Citizens' reinspection program, announced in 2010, was designed to reward homeowners for bolstering their properties against storm damage by upgrading roofs, doors and windows. But it has come under fire recently because customers have lost discounts and seen their premiums rise sharply.

"I have heard that complaint as I've traveled all over the state," Insurance Consumer Advocate Robin Westcott said. "Most people did not get any sort of explanation about what the inspection yielded."

Because of the outcry, the company announced last month a major revamping of the program, saying it will improve communication and give homeowners who lost credits an opportunity to have another inspection, free of charge.

Westcott said her office will work with Citizens to ensure that notices sent to policyholders are in plain language and that program improvements are consumer-friendly.

Inspection reports always have been available at http://www.Citizensfla.com, spokeswoman Christine Ashburn said. To see their reports, homeowners must create an account under the "Manage My Policy" section of the website.

Some homeowners said they had problems getting the inspection reports, so Citizens will begin putting copies in the mail, Ashburn said.

Homeowners should discuss the reports with their insurance agents, who can request reinspections from Citizens. Those who push for the discounts should be prepared to show receipts, building permits and other documents that prove they had the upgrades installed.

The most common reasons for lost discounts: poor photos, missing documents or window stickers and contradictory information, Citizens said.

In a significant number of cases, the insurer gave back credits because homeowners "provided us information that we were not provided at the time of inspection," Ashburn said.

Sandy Teich, of Coconut Creek, saw her premium increase by $865 after a reinspection. But challenging Citizens' report earned her more than $500 in discounts.

Her secret, she said, was finding someone at her inspection company who was willing to take an interest in her case.

Pompano Beach-based Don Meyler Inspection did the reinspection that caused her to lose the discounts. Teich said the report misstated the way her roof is attached to her home and claimed her front door was not hurricane safe because the sticker was painted over.

She said she paid Don Meyler to do another inspection and was assigned a different inspector, who came back to her house and noted that parts of the report were wrong.

Teich said she kept a file of every document related to her insurance and inspections and took detailed notes on every interaction she had with Citizens or the inspection companies.

Citizens told her to go through the company's grievance process, she said.

"There's no dealing with Citizens," Teich said. "I'm lucky I found an inspection company that could help me."

Walsh said Citizens gave him discounts for installing impact-resistant windows and a garage door after he bought his Deerfield Beach house in 2008.

Last fall, he was notified that Citizens wanted to reinspect the home and contracted with Mueller Services. Walsh said an inspector for Mueller found that his front and side doors weren't hurricane-resistant and that the home didn't have enough fasteners in the roof-to-wall connection.

As a result, his premium jumped to $3,100 from $1,900, he said.

Hoping to restore at least some of his discounts, Walsh added shutters for the front and side doors and hired Mueller to look at the changes.

After an issue with the second report, he complained to his insurance agent, who contacted Citizens, and the insurer lowered his premium by $900, Walsh said.

Walsh said he kept all of his documentation and wasn't deterred or intimidated by the process.

"As you can imagine, Citizens is a large company," he said. "Those are big wheels to turn. It takes time."

[email protected], 561-243-6529 or Twitter @paulowers

PULLOUT BOX

State regulators are expected to announce a rate increase Monday for Citizens Property Insurance Corp, the largest home insurer in Florida.

Citizens has requested rate increases around 11 percent on home insurance policies statewide.

Officials recently approved a 6 percent rate increase on homeowners policies for State Farm Florida, which had sought a nearly 15 percent hike.

___

(c)2012 the Sun Sentinel (Fort Lauderdale, Fla.)

Visit the Sun Sentinel (Fort Lauderdale, Fla.) at www.sun-sentinel.com

Distributed by MCT Information Services