Citizens Property Insurance Corporation announced it has decided to restructure its home re-inspection program that has cost policyholders over $137 million dollars in lost mitigation discounts. Senator Mike Fasano was one of the most vocal critics of the re-inspection program because it routinely denied homeowners discounts they had previously been granted. The mitigation program was originally designed to encourage homeowners to make expensive investments to harden their homes against wind damage and then receive discounts on their insurance premiums.
Over 175,000 homeowners have already lost discounts due to the re-inspection program. Citizens has taken back many of the credits it previously granted as a means to increase its revenues without going through a formal rate increase application process.
“I do applaud Citizens for listening to the outcry from its policyholders and deciding to make changes to this re-inspection program going forward,” Senator Fasano states. “However, an enormous amount of damage has already been done. People, in good faith, spent a lot of money to mitigate their homes against damage, only to find out the credits they were promised were taken away after questionable re-inspections of their homes were conducted.”
In its announcement Citizens did not commit to making the changes to the re-inspection program retroactive. Senator Fasano calls upon Citizens to do just that.
“Citizens created a mess both economically and in lost good will with the inspection program,” Senator Fasano states. ”The customers who have already spent the money to mitigate their homes, and how have now lost their discount due to a questionable inspection, deserve a new inspection under the guidelines Citizens will create. These homeowners deserve the chance to recoup their investment as they were originally promised.”
Senator Fasano requests that Citizens make a decision quickly to grant homeowners the opportunity to have their homes re-inspected. During these tough economic times Senator Fasano understands that homeowners need as much as relief as possible.