Litigation To Come: Insurance Policy Changes On Damage Cleanup

The Florida Office of Insurance Regulation approved several important changes to Citizens Property Insurance Co.'s homeowner policy that Citizens hopes will curtail the current litigation trend by insureds, assignment-of-benefit vendors and their attorneys.

Citizens, as well as other private insurers in the state of Florida, have seen a significant increase in property damage claims and lawsuits over the past few years. Many of these claims are brought under an assignment of benefits, or AOB, after repair work is done to the property. In changing the policy language, Citizens hopes to reduce the litigation and avoid additional increases to its policyholders' premiums.

The two most important changes are: