Citizen property insurances are entitled for all people who are considered as a citizen of particular state or country. It is a type of insurance coverage, which can only be purchased if the person has the citizenship.
Citizen property insurance provides the protection to citizens from certain loss of their property. In addition, it covers the damage of property due to the natural catastrophes such as, earthquakes, hurricanes, fire, etc. Furthermore, citizen property insurance has a “loss” clause, which provides liable coverage to the crime or theft of property.
How you are protected with the citizen property insurance policies?
Citizen property insurance provides the property protection in various ways. First, the policy of citizen property insurance covers the financial or economic loss. It means that the citizen property insurance policies will compensate by money for any loss or damage of the property. Loss or damage is purely measured in the financial terms.
For example, your automobile or a car gets damaged. In such cases, the citizen property insurance will pay for the repair. In the same way, citizen property insurance ensures the monetary compensation to replace the damaged car with the new one, if the repairs are not enough. These insurance policies also provide liable cover on the cost of renovation and reconstruction of a building, which has been damaged due to earthquake or fire.
However, citizen property insurance has certain limitations with various benefits. There are some types of losses or damages, which is not included in the liable policy coverage of citizen property insurance. As, the citizen property insurance is purely expressed on monetary terms. So, the losses of a closed ones, or the emotional losses are not covered in the policies of citizen property insurance. So, it is important to understand while purchasing a policy of citizen property insurance that it insures online the property with economic value.
How does citizen property insurance organizations are regulated?
There are various government agencies that handle the operation of citizen property insurance company. In the USA, individual states have the primary rights to regulate the operation of citizen property insurance organizations. The name of these government agencies varies in each state. Sometimes these agencies are called “Division of Insurance”, “Insurance Bureau”, or “Department of Insurance”.
In 2002, the Florida legislature passed a law for their state, which induced merger of the Florida Windstorm Underwriting Association (FWUA) and the Florida Residential Property and Causality Joint Underwriting Association. The merger of these two organization resulted in the new organization of Citizen Property Insurance.
Hence, the citizen property insurance became more efficient and effective provision for the citizens. Florida is a prone area of natural calamity like storms and hurricane, so the homeowners of Florida have higher risk of loss and damage of property. Therefore, citizen property insurance provides those homeowners with the favorable insurance coverage, which are not available in the market of citizen property insurance.