My State farm agent wrote me a homeowners policy for my home in Satellite Beach through Citizens property insurance is it true that I can be surcharged up to 45% in the event of a of a catastrophe?
Yes, in addition to the current premium you are paying for your Citizens property insurance policy you could be surcharged as much as 45% in the event that Citizens does not have the funds to pay for losses. One way to avoid this issue is to find a home insurance policy in a standard admitted market . While your current Citizens policy could be a little less expensive now it could potentially cost you a lot of money in the future.
NOTE: The answers to coverage questions are primarily based on ISO forms generally used in Florida by most companies. However, please keep in mind that all companies forms are NOT necessarily the same. Some companies may provide broader coverage and some may be more restrictive. IN ALL CASES, THE CONSUMER MUST REFER TO HIS OR HER OWN POLICY FOR SPECIFIC COVERAGE INFORMATION.